Bank of America Reiterates Buy Rating on Axiall Following Decent 2Q Results

In a report published Friday, Bank of America analyst Aleksey V. Yefremov reiterated a Buy rating and $56.00 price target on Axiall AXLL.

In the report, Bank of America noted, “We see decent 2Q results as reassuring following the negative surprise posted in 1Q. Although environment in PVC and building products is not as robust as management has hoped we see fundamentals moving in the right direction in 2H13 and beyond. We reiterate Buy and price objective of $56...We recently initiated coverage of AXLL with a Buy rating and a PO of $56. After a choppy start in 2013, we believe that the inflection point is near for the US PVC commodity cycle, with AXLL being the primary beneficiary. As a result of stronger construction demand we see US PVC utilization rising, aiding producers' pricing power. We expect the company's Building Products business to benefit from increased US construction as well. Our 12-month PO of $56 is based on 11.5x our 2014 EPS estimate of $4.90, which implies upside potential of 24% including a dividend yield of 0.7%.”

Axiall closed on Thursday at $45.29.