NEW YORK, Sept 13 (Reuters) - Shares of water treatment company Nalco Holding Co could rise in the next few years, putting the stock at the same level it peaked at in October 2007, Barron's reported on Sunday.
Most analysts believe that Nalco will earn 80 cents a share this year, compared with a $2.44 per-share loss in 2008, Barron's said. Wall Street expects a per-share net profit of $1.17 in 2010 and $1.41 in 2011.
Nalco's earnings can rise at a compound annual rate of 15 percent in the next three years, which would translate into $2 a share at the end of that period, RMB Capital Management Chief Executive Richard Burridge Jr. told Barron's.
Applying the current price-to-earnings multiple of 15 times forward earnings to that target would put the stock at $30, the price where it peaked in October 2007.
Shares now trade around $18, Barron's said.
(Reporting by Robert MacMillan; Editing Bernard Orr) Keywords: NALCO/ (robert.macmillan@thomsonreuters.com; +1 646 223 6012; Reuters Messaging: robert.macmillan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Most analysts believe that Nalco will earn 80 cents a share this year, compared with a $2.44 per-share loss in 2008, Barron's said. Wall Street expects a per-share net profit of $1.17 in 2010 and $1.41 in 2011.
Nalco's earnings can rise at a compound annual rate of 15 percent in the next three years, which would translate into $2 a share at the end of that period, RMB Capital Management Chief Executive Richard Burridge Jr. told Barron's.
Applying the current price-to-earnings multiple of 15 times forward earnings to that target would put the stock at $30, the price where it peaked in October 2007.
Shares now trade around $18, Barron's said.
(Reporting by Robert MacMillan; Editing Bernard Orr) Keywords: NALCO/ (robert.macmillan@thomsonreuters.com; +1 646 223 6012; Reuters Messaging: robert.macmillan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.