UPDATE: Goldman Sachs Downgrades Rockwood Holdings Following Outperformance

In a report published Thursday, Goldman Sachs analyst Robert Koort downgraded the rating on Rockwood Holdings (NYSE: ROC) from Buy to Neutral, and lowered the price target from $80.00 to $78.00.

In the report, Goldman Sachs noted, “We downgrade ROC to Neutral from Buy. Since being added to the Americas Buy List on Nov. 13, 2012, shares are up 53% vs. the S&P 500 up 26%. Over the last 12 months ROC is up 39%, vs. S&P 500 up 18%. We attribute this to ROC's aggressive strategy of maximizing shareholder value through divestments of its non-strategic Ceramics, Additives, and TiO2 units in 2013 (together nearly 60% of EBITDA in 2012). With ROC having achieved a ‘re-rating' of its multiple now reflective of its focused Lithium and Surface Treatment portfolio, we shift to the sidelines and await greater clarity on ROC's plans to deploy the $2.7bn pro forma cash balance ($1.4bn net), likely towards M&A per ROC.”

Rockwood Holdings closed on Wednesday at $68.69.