Huntsman's (HUN - Get Report) stock was upgraded this morning to "Buy" from "Neutral" with a $28 price target at Citi.

The upgrade stems from Huntsman's improving free cash flow and the possibility for a higher valuation multiple following its Venator spin off by the end of Q2, Citi analyst P.J. Juvekar wrote.

Juvekar also illustrated management's willingness to enhance shareholder value through a potential merger of equals.

Shares of Huntsman closed lower Monday by .86% to $24.32 on heavy trading volume. 

This story has been updated from 11:12 a.m. EDT.