Jefferies Trims Estimates For Ashland

Ashland, Inc. ASH reported 4Q margin headwinds, causing Jefferies & Co to lower estimates to $1.06 (from $1.21), and with raw materials experiencing high risk, 2011E is lowered to $4.40 (from $4.50). Jefferies also lowered its price target to $62 (from $70). Jefferies believes that the issues present in Ashland's 4Q show the company's ability to survive raw material volatility, even though demand remains solid and Jefferies' 2011E forecast calls for profits to rise $0.36 y/y due to these demand levels. Jefferies maintains its Buy rating for Ashland, Inc., which closed yesterday at $48.71.