UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Rockwood Holdings on In-Line Q4
In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Rockwood Holdings (NYSE: ROC), and raised its price target from $60.00 to $72.00.
Deutsche Bank noted, “ Rockwood shares rallied 6% following an in-line Q4 as CEO Seifi Ghasemi announced that both Advanced Ceramics and Performance Additives were non-core and under strategic review. Coupled with TiO2, which is also under strategic review, 60% of Rockwood's sales and 54% of EBITDA could be divested in 2013. Should a divestiture of these 3 businesses occur, we estimate ATAX proceeds of $3.4B. Assuming these proceeds are used to repurchases stock, we estimate 6%, or $0.25, accretion, to our '14E EPS of $4.45. With an accretive and multiple enhancing portfolio reorganization underway, and 18% upside to our $72 SOTP price target, we reiterate our Buy.”
Rockwood Holdings closed on Tuesday at $60.94.
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