UPDATE: Monness Crespi Hardt Upgrades Rockwood on High Growth & High Multiples for Remaining Businesses

In a report published Wednesday, Monness Crespi Hardt analyst Jim Chartier upgraded the rating on

from Neutral to Buy, and raised the price target from $67.00 to $80.00. In the report, Monness Crespi Hardt noted, “We are upgrading Rockwood to a Buy rating from Neutral, as double-digit growth rates again look likely for the company's two remaining businesses, Lithium and Surface Treatment. As a result, we expect investors to re-rate both businesses higher, applying richer multiples for each unit. The lithium business sounds like it is on the cusp of acceleration in momentum as the EV market heats up. ROC also has the cleanest balance sheet in the sector with over $1 billion in net cash once the TiO2 sale is completed, which looks like it will be used for both M&A and share repurchases. Finally, we believe that ROC now makes a prime acquisition target and should attract interest once the TiO2 sales to Huntsman is finalized. We raise our target to $80 to reflect a higher earnings outlook and higher multiples.” Rockwood Holdings closed on Tuesday at $69.29.