Loading...
Loading...
In a report published Monday, Bank of America analyst Aleksey V. Yefremov downgraded the rating on
Rockwood HoldingsROC from Buy to Neutral, but reiterated the $73.00 price target.
In the report, Bank of America noted, “We downgrade ROC from Buy to Neutral after major positive catalysts have played out. ROC shares rose 37% YTD to $68, leaving 7% potential upside to our current PO of $73. We applaud management on a well-executed asset divestment strategy. However, we see the shares currently trading close to fair value, represented by cash on the balance sheet plus the remaining two core businesses: lithium and surface treatment. Our sum-of-the-parts valuation framework assigns dollar-for-dollar value for ROC's cash balance of $2.7bn pro forma for the pending 1H14 sale of TiO2 and Performance Additives to Huntsman. Additional upside to our Rockwood PO will require (1) value-creative acquisitions that are in or close to remaining core businesses or (2) re-acceleration of growth in lithium, which we view as unlikely until 2015 when ROC's lithium expansion in Chile should kick in.”
Rockwood Holdings closed on Friday at $67.95.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in