Jefferies Raises Estimates On Ashland

According to Jefferies, Ashland (NYSE: ASH) Q3 EPS $0.02 is raised to $0.80.

Jefferies said that gross profits fell 15% YoY on a 3-month rolling avg. basis on 3% higher sales. “Our $79/share 12-month price target, at 7.3x FY12E EBITDA, is supported by our peak, midcycle, and sum-of-the-parts valuation models for the company and the sector. Key risks: cyclical end market demand and volatile raw materials.”

Ashland closed yesterday at $62.84.