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Wall Street Talks: Analysts’ Recommendations for PolyOne

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Analysts’ consensus for PolyOne

The number of analysts actively tracking PolyOne (POL) stock has increased from 11 to 12 in one month. About 67.0% of them have recommended a “buy” for the stock, and 33.0% have recommended a “hold.” None of the analysts have recommended a “sell.”

The analyst consensus indicates a price target of $42.90 for POL in the next 12 months. That implies a return potential of 15.0% over the closing price of $37.29 on September 15, 2017. In the past two months, the analyst consensus mean target has risen from $41.50 to $42.90.

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Analysts recommend a ‘buy’ or a ‘hold’

POL reported a net loss of $2.20 per share in 2Q17 on a GAAP (generally accepted accounting principles) basis due to the sale of its Designed Structures and Solutions business. However, from the proceeds of the divestiture, POL acquired Rutland and Mesa to focus on specialty color, additives, and inks. As a result, analysts are recommending either a “buy” or a “hold” for the stock.

Individual recommendations from brokerage firms

  • Oppenheimer has rated POL an “outperform” with a target price of $43, implying a return potential of 15.3% from the closing price of $37.29 on September 15, 2017.
  • Suntrust Robinson has raised its target price for POL to $43, implying a potential return of 15.3% over the closing price on September 15, 2017.
  • Baird has rated POL an “outperform” and recommended a target price of $42, indicating a potential return of 12.6% over the closing price of $37.29 on September 15, 2017.

Investors can indirectly hold POL by investing in the iShares US Basic Materials (IYM), which has invested 0.50% of its portfolio in POL. The other holdings of the fund include Monsanto (MON), Praxair (PX), and Air Products & Chemicals (APD) with weights of 8.3%, 6.1%, and 5.2%, respectively, as of September 15, 2017.

In the next part, we’ll look at POL’s valuation compared to its peers.

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