UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Huntsman Corporation Following ROC Pigment Deal

In a report published Thursday, Bank of America analyst Kevin W. McCarthy reiterated a Buy rating on

, and raised the price target from $31.00 to $34.00. In the report, Bank of America noted, “As a follow-up to our earlier note (Affirm Buy as EC green lights ROC pigment deal), we incorporate the pending acquisition of Rockwood's pigment business into our financial model, and raise numbers accordingly. With conditional approval in hand, we expect this deal to close on or about 1 October. In the ensuing quarters, HUN shares should benefit from company-specific growth drivers, including the extraction of synergies. We also appreciate optionality for eventual pigment price increases, but we aren't baking in anything beyond inflationary uplift. Indeed, we think the stock can continue to outperform without higher TiO2 prices as long as MDI (urethane intermediate) and MTBE (gasoline) continue to generate nice margins.” Huntsman Corporation closed on Wednesday at $28.71.