Harsco: Putting the Pieces in Place

3/24 - "We believe this provider of industrial services and products to mostly the steel, energy and infrastructure markets is well positioned to benefit from long-term capital spending trends around the globe in these industries. About 66% of Harsco’s revenue was generated outside of the United States and Canada in 2007. We see considerable opportunity for the company to add to its services offering and broaden its potential customer base. For example, much of the work it does at steel mills can also be provided to facilities processing other metals. We also expect an expansion in Harsco’s geographic footprint, with a focus on faster-growing markets in Eastern Europe, Latin America, and Asia."

"Harsco has augmented its growth over the past four years through fill-in acquisitions. In our view, these carefully screened purchases have strengthened its core business segements by adding technological expertise and new products and boosting overall scale."

"Equally blending our relative P/E and discounted cash flow methodologies, we arrive at our 12- month target price of $73."