UPDATE: Bank of America Downgrades Axiall on Downside Risks, Lack of Potential Upside Catalysts

In a report published Friday, Bank of America analyst Aleksey V. Yefremov downgraded the rating on

from Buy to Neutral, and lowered the price target from $56.00 to $45.00. In the report, Bank of America noted, “We see lack of potential upside catalysts through the end of 2013, while downside risks to chlor-alkali prices (caustic soda + chlorine) became greater recently. We initiated coverage of AXLL with a Buy rating on June 5 based on expected improvement in PVC resin offsetting weakness in caustic soda. While caustic soda prices did decline in July-August, we believe prices could fall more over the next 6 months. Meanwhile, improvement in PVC margins now appears unlikely until the next building season begins in the spring of 2014. We think there is value in AXLL shares for long-term investors, but we do not expect shares to outperform in the near/medium term.” Axiall Corp. closed on Thursday at $40.75.