U.S. Markets closed

Argus Upgrades Harsco, Sees 18% Upside From Here

Shanthi Rexaline

Argus upgraded shares of Harsco Corporation (NYSE: HSC) from Hold to Buy, with a price target of $21. The price target represents roughly 18 percent upside from the stock's closing of $17.85 on Thursday.

Analysts David Coleman stated that the industrial services and engineered products company's cost-cutting initiatives, good returns on prior investments and improving end-market demand led to above-consensus results in the first half of 2017. Coleman noted that management expects this trend to continue, with industrial and metals segment expected to have a strong second half.

See Also: An Industrial ETF Hitting New Highs

Argus also believes the dollar depreciation through 2017 and into 2018 will be a significant tailwind for the company. Accordingly, the firm feels a Buy rating is now warranted despite the risks of investing in a commodities sensitive company.

Citing the stronger-than-expected second quarter results released in early August and the improved second-half outlook, Argus raised its 2018 earnings per share estimate from 67 cents to 74 cents.

"Although the shares are trading at the high end of its 52-week range of $8.52-$17.90, we believe they have more room to run," Argus said.

Latest Ratings for HSC

Date Firm Action From To
Sep 2017 Argus Research Upgrades Buy
Nov 2016 KeyBanc Maintains Overweight
Oct 2016 Jefferies Maintains Buy

View More Analyst Ratings for HSC
View the Latest Analyst Ratings

See more from Benzinga

© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.