NEW YORK (TheStreet) -- Axiall Corp (AXLL) stock has had its price target increased to $49 from $45, UBS said Tuesday. The firm said PVC margin expansion should benefit second-half 2014 results. Analysts reiterated a "neutral" rating.
Separately, TheStreet Ratings team rates AXIALL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AXIALL CORP (AXLL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 44.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 76.5% when compared to the same quarter one year prior, rising from $32.29 million to $57.00 million.
- Net operating cash flow has slightly increased to $169.70 million or 2.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -36.77%.
- AXIALL CORP's earnings per share declined by 11.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, AXIALL CORP reported lower earnings of $2.33 versus $3.44 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.33).
- You can view the full analysis from the report here: AXLL Ratings Report