Among specialty chemical companies, Innospec (IOSP)
is a relatively low-drama player, with a solid management team that
generally does a good job of managing its businesses to the realities of
their respective end-markets – maximizing margins in slower-growing
businesses, but exploiting growth opportunities where they are
available. Innospec doesn’t often get all that cheap apart from broader
market/sector pullbacks, but those are good times to reconsider these
shares.
Innospec has come off a bit from a recent
peak and the shares aren’t all that exciting from a DCF-driven value
perspective, though an EV/EBITDA approach offers a little more upside.
Capital deployment into growth M&A remains a definite possibility,
but I’d prefer to try to pick up shares in the $70’s if possible.
Read more here:
Innospec Offers Steady Performance And Occasional Opportunities
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