In a report published Wednesday, Bank of America analyst Aleksey V. Yefremov initiated coverage on
AXLL with a Buy rating and $56.00 price target.
In the report, Bank of America noted, “We initiate coverage of Axiall (AXLL) with a Buy rating and a PO of $56. After a choppy start in 2013, we believe that the inflection point is near for the US PVC commodity cycle, with AXLL being the primary beneficiary. Besides PVC Axiall manufactures chlorine, caustic soda, building products, and aromatic chemicals. We expect AXLL to benefit from the US housing recovery with 47% of sales directly tied to the industry and another 20% indirectly. We see the 36% sell-off in AXLL shares since mid March as an opportunity to build positions, and view a P/E multiple discount of 30% (ex deal amortization) vs. peers as unwarranted.”
Axiall Corp. closed on Tuesday at $41.47. Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.