UPDATE: Jefferies Increases Target on OMNOVA Solutions to $8.50

Jefferies raises its price target $2.50 to $8.50 on Buy-rated OMNOVA Solutions

as it raises estimates despite near-term raw material headwinds. Jefferies says, "Following a strong Q1 earnings result, we believe OMNOVA is on track to confirm a structural lift in Decorative Products margins in Q2 and confirm an upturn in Performance Chemicals profits in 2H12. We reiterate our Buy rating and raise our price target $2.50 to $8.50." OMN closed at $6.58 a share on Thursday.