UPDATE: Bank of America Upgrades Huntsman Corporation to Buy, Reiterates $24 PT on Favorable Company-Specific Catalysts

In a report published Thursday, Bank of America analyst Kevin W. McCarthy upgraded the rating on Huntsman Corporation HUN from Neutral to Buy, and reiterated the $24.00 price target. In the report, Bank of America noted, “We view favorably Huntsman's new strategic plan to (1) acquire Rockwood's pigment business to create the #2 global player in TiO2 behind DuPont; (2) extract significant synergies; and (3) separate the combined pigment assets within two years of closing to create a purer-play producer of specialties and intermediates. Based on these company-specific catalysts to create and unlock value, investors need not bank on a cyclical upturn in TiO2 to drive EPS growth, although that potential exists for 2014+ in our view. TiO2 industry structure should also improve.” Huntsman Corporation closed on Wednesday at $19.50.