Story updated at 9:50 a.m. to reflect market activity.
Shares of Huntsman gained 1.7% to $25.94 in morning trading.
The firm raised its price target for the chemical company to $32 from $24. Analysts John Roberts, Eldain Rodriguez, and Bill Carroll have greater confidence in accretion from the TiO2 deal and an improving portfolio mix and consistency.
"We upgrade HUN to Buy as we gain greater confidence that the accretive (~$0.40/sh in 2015E) acquisition of Rockwood's TiO2 and Additives businesses is likely to be approved now that HUN has offered concessions (we suspect in inks printing business) to the EU regulators," the analysts wrote. "In addition, we believe TiO2 prices have bottomed and valuation is attractive with the stock trading at 8.8x our PF2015E EPS and 6.0x PF2015E EV/EBITDA."
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Separately, TheStreet Ratings team rates HUNTSMAN CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUNTSMAN CORP (HUN) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."