KeyBanc Downgrades Solutia (SOA) to Hold; View Deal as Relatively Fair Given Macroeconomic Crosscurrents
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Price: $27.82 --0%
Rating Summary:
0 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
0 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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KeyBanc downgraded Solutia (NYSE: SOA) from Buy to Hold.
KeyBanc analyst said, "Over the past few years, Solutia has developed a strong story via maintenance of its top tier operating margins, a much improved cash generation ability, and its market leading high value-added specialty chemical product portfolio. That being said, we are downgrading our rating on shares of SOA given the most recent agreement entered with Eastman Chemical (NYSE: EMN), through which EMN would acquire all outstanding shares of SOA for an implied value of $27.65 per share. On a valuation basis, the bid represents EV/EBITDA and P/E multiples of 9.2x and 13.8x, respectively, on 2011 results, which we view as relatively fair levels given the current macroeconomic crosscurrents."
For an analyst ratings summary and ratings history on Solutia click here. For more ratings news on Solutia click here.
Shares of Solutia closed at $27.37 yesterday.
KeyBanc analyst said, "Over the past few years, Solutia has developed a strong story via maintenance of its top tier operating margins, a much improved cash generation ability, and its market leading high value-added specialty chemical product portfolio. That being said, we are downgrading our rating on shares of SOA given the most recent agreement entered with Eastman Chemical (NYSE: EMN), through which EMN would acquire all outstanding shares of SOA for an implied value of $27.65 per share. On a valuation basis, the bid represents EV/EBITDA and P/E multiples of 9.2x and 13.8x, respectively, on 2011 results, which we view as relatively fair levels given the current macroeconomic crosscurrents."
For an analyst ratings summary and ratings history on Solutia click here. For more ratings news on Solutia click here.
Shares of Solutia closed at $27.37 yesterday.
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