J.P. Morgan Lowers Nalco PT To $30 (NLC)

J.P. Morgan lowered its Nalco NLC price target to $30 from $32 in a research report published today. In the report, J.P. Morgan states, "Nalco is changing, and Erik Fyrwald has a new vision. Under former CEO Bill Joyce and former CFO Brad Bell, Nalco's long-term volume growth rate was secondary to the maximization of near-term financial return. Their corporate priorities were growth in EBITDA, generation of excess free cash flow in service of share repurchase, and debt repayment. Their priorities were to lift margins and returns on capital and to create options in the deployment of funds. Fyrwald's priorities are fundamentally different and center on raising Nalco longer-term financial returns. The means of increase is by accelerating the secular rate of volume growth through the expansion of operations in Brazil, India and China, and building a broader technology capability in the domestic market for cleaner water and air." Shares of Nalco were at $27.76 in after hours trading at the time of posting, up 0.09% from Friday's market close.