Tuesday, January 11, 2011

Horsehead Holding (NASDAQ:ZINC) Looks Strong on Rising Zinc Prices

Horsehead Holding (NASDAQ:ZINC) got a big EPS estimate boost for 2011 on expectations zinc prices will go up on increasing demand.

Canaccord says, "To reflect the strong rebound in zinc metal prices over the past few months, we raise our LME zinc price assumptions for 2011. As a result, our 2011 EPS estimate goes to $1.00, from $0.85 previously. Meanwhile, steel industry data points look increasingly positive, with production levels expected to increase this year which we conclude should drive stronger demand for zinc used in the steel galvanizing process."

Canaccord Genuity reiterates a "Buy" on Horsehead Holding, which was trading at $12.94, up $0.34, or 2.70 percent. Canaccord has a price target of $17 on them.

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