Deutsche Bank Reiterates a 'Buy' on OMNOVA Solutions (OMN); Raising PT & Estimates on Well Positioned Portfolio

Deutsche Bank reiterates a 'Buy' on OMNOVA Solutions (NYSE: OMN) price target rasied from $6 to $8.

Deutsche analyst, David Begleiter, said, "OMNOVA shares rose 16% after a healthy FQ1 beat driven by pricing ($24MM) which handily exceeded raw material increases ($14MM). While OMNOVA faces escalating butadiene (up 40% QoQ) and styrene (up 7% QoQ) costs in FQ2, we expect continued pricing (with a 45 day lag) as well as a modest volume recovery will more than offset the impact of higher raw materials thru '12. With OMNOVA’s portfolio more resilient post the Eliokem acquisition and the exit of commercial wall covering, and valuation an attractive 9.4x '12E EPS, we reiterate our rating." (Raises FY12 EPS estimate from $0.55 to $0.70)

For an analyst ratings summary and ratings history on OMNOVA Solutions click here. For more ratings news on OMNOVA Solutions click here.

Shares of OMNOVA Solutions closed at $6.56 yesterday.

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