UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on OMNOVA Solutions

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on OMNOVA Solutions

, and slightly raised its price target from $8.50 to $9.00 Deutsche Bank noted, “Weak prices but weaker raws. Valuation attractive at 9.6x '14 EPS. Buy. OMNOVA Q4 results fell short of consensus as prices, volumes and FX were lower than expected owing to demand weakness in Europe and in the North American paper industry. Despite weak sales growth, raw material declines have outpaced price declines, thus expanding margins. With the commercial wallcovering divestiture, the transition of coated fabric products to more efficient manufacturing sites and 35% exposure to the housing market, which appears to be gaining momentum, we believe OMNOVA's portfolio still possess $1/shr or earnings power (~15). With valuation an attractive 9.6x '14E EPS, we reiterate our Buy rating.” OMNOVA Solutions closed on Tuesday at $7.65.