Jefferies Lowers CBT 2011E EPS Estimate

Jefferies is lowering its 2011E EPS estimate from $3.25 to $3.15. “Cabot Corp. CBT intends to spend $180m to expand carbon black capacity by 300,000 tpy (15% of capacity) in emerging regions. Given no recent competitor capacity announcements, the market could remain tight into 2012-13,” Jefferies writes. Cabot currently trades at $44.82.