Deutsche Bank Reports on Ferro

Deutsche Bank commented on Ferro FOE in a report released today. In the report, Deutsche Bank was positive in its assessment of the company. Deutsche Bank writes, "With Ferro shares down 25% since the Q1 release in late April, Ferro is now the cheapest stock in specialty chemicals at 4.6x ‘12E EBITDA vs. 6.6x, for the group. The cause of the decline is an inventory correction in solar modules that is impacting demand for Ferro's high margin solar paste. While there is $0.10-$0.15 of downside in ‘11 if the correction lasts longer than 3-6 months, with the future of solar bright as governments back away from nuclear power, we believe downside in the shares is limited. With valuation compelling, we upgrade Ferro to Buy." Deutsche Bank currently has a Buy rating on Ferro and a price target of $15. Shares of Ferro closed at $12.55, up $0.10 on the day.