A. Schulman (NASDAQ:SHLM) Lacks Catalyst to Boost Share Price

Citing rising costs of raw materials and a lowered EPS outlook, KeyBanc says A. Schulman (NASDAQ:SHLM) lacks a catalyst to drive the share price of the stock.

KeyBanc said, "Given a disappointing start to FY11, downward revision to our earnings outlook with a good portion being back-end loaded and the potential for rising raw materials costs to add wrinkles as the year unfolds, we are revising our rating on SHLM to HOLD from BUY. While the stock's weakness yesterday (Thursday) discounts the weak fiscal 1Q11 to some degree, we believe our HOLD rating is appropriate given the lack of a good catalyst to drive momentum in the stock."

KeyBanc downgraded A. Schulman from "Buy" to "Hold." They closed Friday at $20.45, gaining $0.14, or 0.69 percent.