UPDATE: Piper Jaffray Lowers PT on Chemtura on Adjusted Forward Expectations

In a report published Tuesday, Piper Jaffray analyst Mike J. Ritzenthaler reiterated an Overweight rating on Chemtura CHMT, but lowered the price target from $29.00 to $28.00.

In the report, Piper Jaffray noted, “We maintain our Overweight rating on shares of CHMT as we take a closer look at the effect of stranded costs associated with the AO/UV sale on our 2Q13 estimates. What we had previously estimated to be a $5 million sequential decline in corporate expenses will likely be closer to $1 – 2 million, and as a result, we are lowering our 2Q EPS estimate to $0.33 (from $0.37 which immediately followed the pre-release in early June). We are also capitalizing a lower earnings run-rate in Engineered Products in 3Q and to a lesser extent in 4Q, which results in FY13 EPS of $1.20 (from $1.33 previously). We remain well above consensus for FY14, and continue to believe that the sum of the parts argument for Chemtura's valuation is compelling.”

Chemtura closed on Monday at $21.06.