UPDATE: Goldman Sachs Initiates Coverage on W.R. Grace With Buy Rating, $105 PT on Construction Leverage, Strong Cash Flow

In a report published Tuesday, Goldman Sachs analyst Brian Maguire initiated coverage on W.R. Grace GRA with a Buy rating and $105.00 price target.

In the report, Goldman Sachs noted, “We initiate coverage of W.R. Grace (GRA), a $6bn global specialty chemical company, with a Buy rating and $105, 12-month price target and add GRA to the Conviction List. In our view, investors should own GRA for exposure to rebounding construction markets and for its high-quality portfolio of assets that deliver above-average cash flow, margins and returns. In a construction recovery we see the potential for an additional $100mn-plus of EBITDA ($0.85-plus of EPS). We also believe that GRA's valuation will improve when it emerges from Chapter 11 bankruptcy protection (expected in late 2013), gathers more coverage, or is included in the S&P family of indices.”

W.R. Grace closed on Friday at $80.03.