UBS Upgrades Oiln (OLN) to Buy; too many improvement to ignore

June 15, 2021 9:13 AM EDT
Get Alerts OLN Hot Sheet
Price: $46.13 +1.59%

Rating Summary:
    18 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 25 | New: 45
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UBS analyst John Roberts upgraded Oiln (NYSE: OLN) from Neutral to Buy with a price target of $62.00 (from $45.00).

The analyst commented, "We upgrade OLN to Buy & raise our price target to $62 from $45 (~24% potential upside). OLN's stock is up ~4x since start of new CEO (former COO of CE), but we see upside given improved supply/demand dynamics for CAV. While 2021 EBITDA is a temporary peak due to one-time gains, OLN is early in a new strategy to optimize chlorine-related earnings & has announced capacity rationalization in an environment with little new capacity slated for startup. OLN management is attempting to improve Epoxy margins (target margins ~1700bps higher than 1Q21). Winchester earnings have outperformed since taking control of a U.S. military small caliber ammo plant in 4Q20. UBS will host CEO & CFO in Kansas City on Jun 18, & host head of chlorine-related ops. (~70% of 2022e segment EBITDA) in NYC on Jun 23."

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

Shares of Oiln closed at $47.94 yesterday.

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