Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Axiall jumped 10% today after the company was upgraded by an analyst.
So what: Analyst at Goldman Sachs upgraded the stock to a buy rating and increased its price target from $45 to $60 per share. They think that higher ECU margins, lower ethylene prices, housing price starts, and buybacks could be catalysts for the stock.
Now what: The new price target implies a 30% upside in the next year, which is a big jump for any stock. The current expectation from a group of analysts is for earnings to fall slightly from $3.79 per share last year to $3.65 per share in 2014. If the company can outperform that on these catalysts the stock could definitely do well, but I wouldn't buy on the upgrade alone.
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The article Why Axiall Corp.'s Shares Jumped Today originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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