OMNOVA Falls Short of Q4 Estimates (OMN)

Jefferies is out with its report on Omnova OMN after OMN missed estimates for Q4. In a note to clients Jefferies writes, "Excluding net one-off items of $1.62/share, OMNOVA reported Q4 EPS of $0.18, $0.07 below consensus and $0.09 below our estimate (mostly due to pricing lagging raw materials in Decorative Products). Market share gains and a more rational competitive environment in S/B latex should offset weak end markets in 2011, in our view. With the commercial real estate downturn still a risk to sentiment, however, we reiterate our Hold rating." Jefferies has an $8.25 price target on OMN. OMN is trading at $7.80, down 6.70% from yesterday's close.