Solutia Reports Excellent 2011 Guidance

Deutsche Bank has published a research report on Solutia Inc. SOA after the company reported 2011 guidance well above expectations. In the report, Deutsche Bank writes "Solutia's investor meeting exceeding expectations with 2011 guidance well above consensus, strong arguments for margin sustainability and robust 2015 sales and EPS targets. With the highest EBITDA margins in specialty chemicals (26% vs 18%), one of the best growth profiles in the industry (8-10% sales growth) and #1 positions (market share, cost and technology) in every business, we believe Solutia will close its valuation discount vs peers (6.5x ‘11E EBITDA vs 7.5x) as it delivers on expectations and lowers its net debt/EBITDA to 2.0x (current 2.45x)." Deutsche Bank maintains its Buy rating and $26 price target. Solutia closed yesterday at $20.75.