UPDATE: UBS Starts TRONOX (TROX) at Buy; Exxaro Acquisition Plus Multiple Near-Term Catalysts

(Updated - June 26, 2012 10:48 AM EDT)

UBS initiated coverage on shares of TRONOX (NYSE: TROX) with a Buy rating and a $145 price target.

Analyst, Gregg A. Goodnight, said, "Post emergence from bankruptcy in early 2011, Tronox has recently added the Exxaro mineral sands business through a debt-free merger. This results in the company being over 100% integrated back to ore feedstock which is a significant hedge against accelerating ore pricing. We believe that this is a de-risking event that will help extend the current period of strong financial performance."

Goodnight also highlighted a few potential near-term catalysts including: Possible large one-time special cash dividend, begin steady quarterly cash dividend, and stock buyback plan.

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

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