Analyst Gary Prestopino of Barrington maintained a Buy rating on Koppers Holdings, retaining the price target of $55.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Gary Prestopino has given his Buy rating due to a combination of factors that highlight Koppers Holdings’ strategic positioning and operational improvements. The company is at a pivotal point in its strategy, having completed major capital projects and now focusing on enhancing its fundamentals. This shift is expected to drive operating leverage, as evidenced by the company’s ability to maintain strong adjusted EBITDA margins despite a decline in sales, thanks to significant cost reductions and efficiency improvements.
Furthermore, Koppers Holdings has embarked on a strategic transformation initiative called Catalyst, aimed at boosting profitability and long-term shareholder value. This initiative includes enhancing core business units, optimizing supply chain processes, and streamlining operations. The anticipated sale of its Rail Structures business is part of this transformation, which is expected to further strengthen the company’s financial position. These strategic moves, coupled with a conservative risk profile and a promising outlook for free cash flow generation, underpin Prestopino’s positive outlook on the stock.
In another report released on August 8, B.Riley Financial also maintained a Buy rating on the stock with a $50.00 price target.