UPDATE: Monness Crespi Hardt Upgrades Olin Corporation to Buy, Names $31 PT on Recent Acquisitions

In a report published Monday, Monness Crespi Hardt upgraded its rating on Olin Corporation

from Neutral to Buy, and named a $31.00 price target. Monness Crespi Hardt noted, “Olin is in the classic position of a company that has spent a number of years under a much higher than normal capex program in order to upgrade its facilities to a much more efficient operating base. Approximately $500 million ($6.25/share) has been spent over the past two years to exit mercury cell production, build out bleach capacity and move Winchester manufacturing capacity to Mississippi. Going forward, the depreciation schedule will rise, capex will drop and free cash flow should expand rapidly. Management has worked for several years now to change the manufacturing base from its historic, economically cyclical base to one that carries higher margins and is less dependent on the vagaries of the economy. Three well timed and well placed acquisitions have expanded the Chlor Alkali business.” Olin Corporation closed on Friday at $23.99.