Jefferies Adjusts Estimates on Ashland (ASH)

Jefferies has adjusted estimates on Ashland ASH according to its research report published today. In a note to clients, Jefferies writes, "Better trends in Performance partly offset ongoing raw material pressure in Water; recent pricing actions should begin to help in November. On an adjustment to accounting for the SudChemie JV and lower Water margins, we are lowering our Q1 EPS estimate to $0.76 and FY11E to $3.95." Even with lowered estimates, Jefferies reiterates its Buy rating on ASH because of "significant operating leverage to a recovery and robust free cash flow." ASH closed Tuesday at $51.61.