Deutsche Bank Reinstates Coverage Of Solutia With Buy Rating (SOA)

Deutsche Bank analysts released a research report today reinstating coverage of Solutia SOA with a Buy rating and $20.00 price target. They wrote that "with the highest EBITDA margins in specialty chemicals (25% vs. 17% avg.), one of the best growth profiles in the industry (8-10% sales growth) and #1 positions (market share, cost and technology) in every business, Solutia deserves a valuation premium not its current 35% discount (5.8x '10 EBITDA vs. 8.5x for peers.)" Deutsche Bank has a $20.00 price target on the stock. During today's trading session, SOA has jumped 5.04% to $15.41. Year to date, Solutia has gained 21.42%. Solutia Inc. is a global manufacturer and marketer of a variety of chemical and engineered materials that are used in a range of consumer and industrial applications.