Investment bank Jefferies has recently upgraded their rating on Quaker Chemical (NYSE: KWR) from hold to buy, citing potential upside for the stock. Quaker Chemical is a global provider of specialty chemicals for the industrial and manufacturing sectors, and has seen a strong performance in recent months.
According to Jefferies analyst Laurence Alexander, Quaker Chemical has a solid track record of delivering strong earnings and cash flow growth. The company also has a diverse customer base and a strong presence in key markets, making it well-positioned for future growth. Alexander believes that the current valuation of Quaker Chemical presents an attractive buying opportunity for investors.
One of the main catalysts for Quaker Chemical’s potential upside is its recent acquisition of Houghton International, a leading global provider of metalworking fluids and services. The merger has expanded Quaker Chemical’s product portfolio and global presence, and has the potential to drive growth and cost synergies. Additionally, the company has a strong balance sheet and has consistently returned value to shareholders through dividends and share repurchases.
In summary, Jefferies’ bullish outlook on Quaker Chemical is based on the company’s strong financial performance, diverse customer base, and recent acquisition. With the potential for growth and cost synergies, Quaker Chemical may present a profitable opportunity for retail investors. As always, it’s important for investors to do their own research and consider their risk tolerance before making any investment decisions.