UPDATE: Wunderlich Securities Lowers PT On Koppers Holdings On Lower Oil Prices

In a report published Tuesday, Wunderlich Securities analyst Liam D. Burke reiterated a Buy rating on Koppers Holdings (NYSE: KOP), but lowered the price target from $52.00 to $35.00.

In the report, Wunderlich Securities noted, “Koppers (KOP) results have suffered as a result of weaker aluminum production in both North America and Europe. With declining oil prices the company's operating margins could further suffer. Lower oil prices make competing petroleum-based alternatives to carbon black feedstock and naphthalene more price competitive. Our revised estimates reflect the potential margin pressure on more competitive pricing. We are lowering our 2015 EPS estimates to $2.23 from $2.65 and our price target to $35.00 from $52.00. We are maintaining our Buy rating because our current EPS estimates do not fully reflect the earnings power of the company based on increasing world-wide aluminum production, the company's Chinese joint venture, and a growing railroad-related business.”

Koppers Holdings closed on Monday at $26.59.