UPDATE: Piper Jaffray Initiates WR Grace at Overweight on Successful Re-Emergence

Piper Jaffray initiated coverage on WR Grace (NYSE: GRA) with an Overweight rating and a $70 price target. Piper Jaffray commented, "We believe shares will work into successful and timely emergence from Chapter 11 next year, margin expansion from a pipeline of new zeolite catalyst technologies, and shaking off the unfavorable mix shift in Materials Technologies seen in 1H12 results. In addition, we are encouraged by the progress in building catalyst production capacity in the Middle East and China, both key areas of growth. Post emergence, we expect Grace to be at the top end of their peer group in terms of cash generation ($6/share, 10% yield in FY13) which bodes well for internal growth projects and acquisitions."WR Grace closed at $58.84 on Wednesday.