Ashland (NYSE:ASH) — This global specialty chemical company has operations in more than 100 countries. Analysts, including S&P, have been raising both earnings and price targets on the company.
On Monday, S&P raised fiscal year (FY) 2012 (ending in September) earning per share (EPS) estimates to $6.55 from $6.35 previously, and FY 2013 EPS to $7.75 from $7.50. S&P also raised its price target for the stock to $87 from $80. Analysts see further margin expansion due to strength in the energy sector and a recovery in the construction sector.
Technically ASH has been in a powerful bull channel since December 2009. A pullback from over $78 just two weeks ago, to under $70 on Wednesday, provides an excellent opportunity to own this quality chemical producer.
Ashlandis an example of the type of quality stocks we want to buy on a market correction. The trading target for ASH is $80.