J.P. Morgan Raises PT To $33 On NLC

J.P. Morgan is raising its price target on Nalco Holding Company NLC from $30 to $33 to reflect increase in earnings projection for 2012. In the report, J.P. Morgan writes. “we believe that Nalco's margin issue is temporary from a fundamental standpoint, and that the combination of the financial health of its customer base, its strong market positions, and an above-average rate of volume growth should lead to a recovery of raw material cost pressure by year-end and clear the way for a very profitable 2012. We raised our 2012 EPS projection for Nalco from $1.85 to $2.00 to reflect a faster rate of volume growth and a margin recovery due to prices that should pass through over the coming 5-month period.” J.P. Morgan maintains its Overweight rating on NLC. NLC closed yesterday at $29.11.