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 (NYSE:AXLL) 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.