Cabot On Track To Achieve Its EPS Target For FY12

Analysts at JP Morgan reiterate their "neutral" rating on Cabot Corporation CBT, while raising their estimates for the company. The target price for CBT has been raised from $31 to $33. According to JP Morgan, “Cabot appears on track to achieve its F2012 EPS target of $3.00/share in F2011. Its core Rubber Black business is benefiting from cyclical improvement in the tire market, the Supermetals (Tantalum) business is enjoying strong demand from electronic applications coupled with the tightness on the tantalum market.” “Cabot reported strong earnings growth for Q3:F10 (ended June): Rubber Black profits almost quadrupled, Supermetals operating income more than tripled, and Performance profits advanced 3.5 times versus the depressed results of the year ago period. Consolidate profits increased from $21M in Q3:F09 to $92M in Q3:F10. Results were assisted by positive inventory variation (+$10M) and LIFO reserve adjustments (+$15M),” the analysts add. JP Morgan has raised its pro-forma EPS estimates for 2010 and 2011 from $2.40 to $2.95 and from $2.55 to $3.25, respectively. More Analyst Ratings here