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Cytec Industries Shares Jump After Upgrade

The Associated Press

NEW YORK (AP) — Shares of Cytec Industries Inc. jumped Monday after an analyst boosted his rating on the specialty chemicals maker, citing its ability to rebound given its diverse product line.

The stock rose $3.46, or 17.5 percent, to $23.27 in afternoon trading. Shares have traded between $10.50 and $64.15 in the past 52 weeks.

Jefferies & Co. analyst Laurence Alexander boosted his rating to "Buy" from "Hold" and his price target to $27 from $20. The new target implies he expects the stock to jump 36 percent over Friday's $19.81 close.

The West Paterson, N.J.-based company is an attractive investment due to its array of products that are used in light aircraft, environmentally friendly coatings and many other areas, Alexander said. The company will likely also benefit from an expected improvement in manufacturing, he said.

Alexander expects Cytec to earn $1.35 per share in 2009. Analysts polled by Thomson Reuters expect, on average, earnings of $1.38 per share for the year.

Cytec has guided for 2009 earnings in the range of $1.35 per share to $1.75 per share.

Meanwhile, the Dow Jones industrial average jumped more than 2 percent on Monday after surprise increases in pending home sales and construction spending offered the latest signs that the economy is stabilizing.