Analysts Expect Taminco to Grow in its Main End Market

Taminco Corporation TAM is the world's biggest producer of alkylamines and alkylamines derivatives.

Its products are used by customers in the manufacturing of various products primarily for the agriculture, water treatment, personal and home care, animal nutrition and oil and gas end-markets. The company currently operates in 19 countries with seven production facilities in the United States, Europe and Asia.

Taminco completed its IPO in mid-April on the NYSE. Shares have increased almost two percent since the IPO.

Following the constant price increase, analysts are largely bullish on this company. On Tuesday morning, Goldman Sachs, Jefferies and JP Morgan initiated coverage on the company with two Buy ratings and one Neutral, respectively. Price targets range from $17.00 to $23.00.

Analysts forecast growth prospects over the next few years, with half of that resulting from new products and growth capex, and the rest from mix shift and the balance from volume growth.

With growth potential, less volatile end-market and free cash flow driven characteristics, the company generates high margins with less volatility than other chemical companies. In addition, Taminco gives investors leverage to secular growth trends in crop acreage, population, urbanization and the global middle class.

Taminco closed Friday at $17.40.