UPDATE: Credit Suisse Initiates Taminco at Outperform on Multiple Positive Factors

In a report published Tuesday, Credit Suisse analyst John P. McNulty initiated coverage on Taminco Corporation TAM with an Outperform rating and $25.00 price target.

In the report, Credit Suisse noted, “We are initiating coverage on Taminco (ticker TAM) with an Outperform rating and a $25 target price (~45% upside potential). We believe that, owing to significant consolidation in the alkylamines industry as well as relative stability of the end markets, TAM should see solid operating income growth and free cash flow that should drive consistent earnings growth, all of which is not reflected in the current valuation at 7.1X our 2014 EBITDA estimate. As investors grow more comfortable with the story, the stock should see multiple expansion (which we believe will increase as the private equity overhang moderates).”

Taminco Corporation closed on Friday at $17.40.