Oppenheimer Has Outperform Rating On Kronos Worldwide

Oppenheimer & Co. has an Outperform rating and a $52 price target on shares of Kronos Worldwide Kronos Worldwide, Inc. KRO. In a note sent to clients Oppenheimer writes, "We initiate on KRO with an Outperform rating and $52 price target. As with many materials, titanium dioxide (Ti0 2) prices are melting up; for KRO, realized prices (incl. F/X and mix) were up 5% year-over-year in 2Q10, 10% in 3Q10, and should spike 17% in 4Q10, 19% in 1Q11 and 31% in 2Q11 assuming the last two record-setting price hikes are implemented after a quarterly lag. Looser supply or demand destruction could temper prices, but it is premature to call a top absent a shock, while KRO has significant margin upside potential if TiO2 strength persists." Shares of KRO closed at $42.50 on Friday.