Jefferies Comments On Management Meeting With W.R. Grace

In a report published by Jefferies, W.R. Grace GRA operational levers are intact.

Jefferies said that it recently hosted meetings with W.R. Grace CFO Hudson LaForce. “Key topics discussed included key operating levers, raw materials, competitive dynamics and long-term targets. Overall, the tone was upbeat, and we reiterate our Buy rating. W.R. Grace trades at 12.1x 2011E EPS and 7.6x 2011E EBITDA--after adding asbestos liabilities to expected pro forma debt. Our 12-month price target is $46, 8.0x 2012E EBITDA, supported by our mid-cycle valuation. Key risks: lingering litigation as part of bankruptcy, and choppy end-market demand.”

W.R. Grace closed yesterday at $35.59.