UPDATE: Goldman Sachs Raising Price Target On Worthington Industries (WOR)

Goldman Sachs is raising its price target on shares of Worthington Industries WOR to $22 from $20, but it is keeping its Neutral rating on shares. In a note to clients, Goldman writes, "We raise our 4Q2011 (to end-May) EPS estimate for WOR to $0.50 vs. $0.38 driven by higher average realized steel prices, bringing the FY2011 estimate to $1.34 from $1.17. We also amend our model to reflect the sale of Dietrich Framing to a JV in which WOR has taken a 25% stake. This transaction raises our FY2012 2Q/3Q estimates to $0.30/$0.33 from $0.28/$0.30 and our FY2012 estimate to $1.55 from $1.50. In our view, the new JVs in India and China have long-term potential and thus we raise normalized estimates to $1.75 from $1.65 while recognizing significant upside potential to these estimates. This lifts our 6-month P/E, EV/EBITDA based target price to $22 from $20. We maintain our Neutral rating." Shares of WOR gained 11 cents on Friday to close at $21.03, a gain of 0.5%.