NEW YORK (TheStreet) -- Shares of Axiall (AXLL) are decreasing 0.12% to $32.52 on heavy trading volume early Monday afternoon as JPMorgan cut its rating on the stock to "neutral" from "overweight," the Fly reports.
The downgrade comes after the company reached an agreement to be acquired by Westlake Chemical (WLK) last week.
The Houston-based company will pay $33 per share in cash for Axiall. The deal has an enterprise value of about $3.8 billion, including debt and other liabilities, the companies said.
The firm also upped its price target on Axiall stock to $33 from $26.50.
Atlanta-based Axiall is a manufacturer and marketer of chemicals and building products.
The combined company would be the third-largest chlor-alkali producer and the second-largest PVC producer in North America.
About 4.57 million of Axiall's shares were traded so far today vs. its average volume of 1.04 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on Axiall stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AXLL