Deutsche Bank Maintains Buy on Spartech

Deutsche Bank is out with its report today on Spartech SEH, maintaining Buy. In a note to clients, Deutsche Bank writes, "While FQ2 results were ahead of consensus, 2H'11 guidance was below expectations due to volatile resin costs and continuing production inefficiencies. While operational improvements continue to gain traction, progress is slower than expected in the core sheet business. However, with CEO Vicki Holt assuming direct responsibility for sheet and gross margin/lb making progress towards the 13c target (11.5 cents in Q2), we believe Spartech will show substantial earnings improvement in 2012. With valuation an attractive 11.0x ‘12E EPS, maintain Buy." Shares of SEH closed Monday at $6.03, up 0.33% from Friday's close.