Upside is Ahead for Harsco, Analysts Say

    Author Siraj SarwarPosted on Categories Metals & MiningTags , , , , , , , , , , , , , , , , , , , , , , , , ,

    Harsco Corporation (NYSE:HSC) offers products and services to steel and industrial producers in several countries, including the United States. HSC shares jumped substantially in the last twelve months, amid increasing demand for its products and services in mining, industrial and rail markets.

    Its revenues were standing around $1.70 billion in fiscal 2017, up sharply from $1.60 billion in the previous year. The strong revenue growth allowed the company to post positive earnings per share in FY2017, compared to the big loss in the previous year.

    HSC stock currently trades around $20, up considerably from the 52-week low of $11 a share.

    Its stock has the 52-week trading range of $11.40 – $23.20 with the market cap of $1.66 billion.

    Harsco

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    Analysts believe Harsco is set to generate double-digit revenue and earnings growth this year – which would provide support to its share price.

    Argus has increased HSC stock price target to $24 with the “Strong Buy” rating. Lake Street Capital has also restated “buy” rating for HSC shares, and the firm has issued a price target of $30.00, higher from the previous price target of $26.00.

    Optimistic Outlook Enhances Investors Confidence

    Mining and industrial companies are likely to expand their investments in growth opportunities this year, which would create additional demand for Harsco Corporation products and services.

    Its CEO looks significantly optimistic about the future fundamentals. He says, “We expect that 2018 will be another year of positive momentum for Harsco, with each business again expected to see a year-over-year improvement in underlying performance.  Our strategic priorities remain focused on portfolio growth and development as well as serving our customers and operational excellence.”  

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    The company expects double-digit revenue growth in FY2018. The positive impact of tax cuts from U.S. government combined with cost-cutting allowed the company to predict full-year earnings per share in the range of $0.97 to $1.14; significantly higher from adjusted earnings per share of $0.74 in 2017.

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    Author Siraj Sarwar
    About the author: Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.