Gary Prestopino, an analyst from Barrington, maintained the Buy rating on Koppers Holdings (KOP – Research Report). The associated price target is $64.00.
Gary Prestopino has given his Buy rating due to a combination of factors which include Koppers Holdings Inc.’s recent financial performance and the company’s business segments’ developments. Koppers reported fourth-quarter results that surpassed expected sales, with revenues reaching $513.2 million and adjusted EBITDA at $53.9 million. Additionally, without a one-time bad debt reserve, the adjusted EBITDA would have been even higher. This indicates a solid operational performance, aligning well with the high end of their guidance for the year. Prestopino’s own forecasts were slightly different, expecting lower revenues and a higher adjusted EPS, but the company’s actual results were within the anticipated range for annual guidance, even not considering the bad debt reserve impact.
The underlying business segments of Koppers have also shown positive trends, which likely contributed to Prestopino’s rating. The Railroad and Utility Products and Services (RUPS) segment recorded a significant 12.1% increase in sales, driven by price increases and volume growth in certain markets. This segment achieved a record adjusted EBITDA of $20.7 million, reflecting a substantial 56% increase, attributable to successful price strategies and improved plant utilization. The Performance Chemicals (PC) segment also experienced a robust 16.8% sales growth, boosted by global pricing actions and volume increases in key markets. These segments’ strong performances, particularly in pricing power and volume growth, suggest a positive outlook, supporting Prestopino’s Buy recommendation for Koppers Holdings.
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Koppers Holdings (KOP) Company Description:
Koppers Holdings, Inc. operates as a holding company, which produces treated wood products, wood treatment chemicals and carbon compounds. It operates through the following segments: Carbon Materials and Chemicals; Railroad and Utility Products and Services; and Performance Chemicals. The Carbon Materials and Chemicals segment manufactures carbon pitch naphthalene,creosote and carbon black feedstock. The Railroad and Utility Products and Services segment sells treated and untreated wood products, manufactured products and services primarily to the railroad and public utility markets. The Performance Chemicals segment engages in the development, manufacture, and marketing wood preservation chemicals and wood treatment technologies for use in the pressure treating of lumber for residential, industrial and agricultural applications. The company was founded on November 18, 2004 and is headquartered in Pittsburgh, PA.
Read More on KOP:
- Koppers Holdings sees FY24 adjusted EPS $4.60-$4.80, consensus $4.71
- Koppers Reports Fourth Quarter and Full-Year 2023 Results; Provides 2024 Outlook
- Koppers Signs Agreement to Acquire Brown Wood Preserving
- Koppers Holdings subsidiary to acquire Brown Wood Preserving for $100M
- Koppers Holdings reports Q4 adjusted EPS 67c, consensus 70c
