Analyst cuts rating on Globe Specialty Metals
NEW YORK (AP) — Shares of Globe Specialty Metals fell more than 6 percent on Monday after an analyst downgraded the silicon alloy maker, saying its stock price has risen to fair value.
THE SPARK: Ian Corydon of B. Riley & Co. lowered Globe Specialty Metals to "Neutral" from "Buy."
THE ANALYSIS: Corydon says that Globe Specialty Metals Inc. is currently trading slightly above his $16.75 price target. The shares closed at $17.04 on Friday.
"While Globe Specialty Metals has a lot going for it, silicon metal prices remain lackluster and negotiations for 2013 supply contracts will begin in earnest in the October through December timeframe," he wrote in a client note.
SHARE ACTION: Globe Specialty Metals' stock dropped $1.15, or 6.8 percent, to $15.89 in afternoon trading. The shares have traded between $11.41 and $18.40 over the past year and are up 23 percent for the year to date.