UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Rockwood Holdings on In-Line Q4

Loading...
Loading...
In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Rockwood Holdings
ROC
, and raised its price target from $60.00 to $72.00. Deutsche Bank noted, “ Rockwood shares rallied 6% following an in-line Q4 as CEO Seifi Ghasemi announced that both Advanced Ceramics and Performance Additives were non-core and under strategic review. Coupled with TiO2, which is also under strategic review, 60% of Rockwood's sales and 54% of EBITDA could be divested in 2013. Should a divestiture of these 3 businesses occur, we estimate ATAX proceeds of $3.4B. Assuming these proceeds are used to repurchases stock, we estimate 6%, or $0.25, accretion, to our '14E EPS of $4.45. With an accretive and multiple enhancing portfolio reorganization underway, and 18% upside to our $72 SOTP price target, we reiterate our Buy.” Rockwood Holdings closed on Tuesday at $60.94.
Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche Bank
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!

Loading...