Nalco Holding (NYSE:NLC) Needs 5% Organic Growth to Meet Consensus

While Nalco Holding (NYSE:NLC) will lose dispersants sales at an estimate rate of 30 percent to 45 percent, according to Jefferies (NYSE:JEF), they still believe they'll be able to generate enough organic growth to meet consensus.

Jefferies stated, "we estimate the reduction in dispersant sales will undercut 30%-45% of Nalco's operating leverage in 2011. As a result, we estimate that, absent tailwinds from taxes, pricing, productivity, or raw materials."

Estimates by Jefferies is the loss in dispersant organic growth will be about 200bps in 2011.

Jefferies reiterates their "Buy" rating on Nalco Holding, which closed Thursday at $30.41, losing $0.18, or 0.59 percent. Jefferies raised their price target on Nalco from $32 to $36.