UPDATE: Citigroup Reiterates on Axiall Following Strong 4Q Report

In a report published Friday, Citigroup analyst P.J. Juvekar reiterated a Neutral rating on Axiall (NYSE: AXLL), but lowered the price target from $51.00 to $48.00.

In the report, Citigroup noted, “AXLL posted a strong 4Q as synergies are coming through faster than expected and Building Products margins are improving, which likely explains the 6% move in the stock today. However, the near-term outlook is challenging given: 1) The spike in natural gas prices to over $6/mmbtu; 2) Soft construction activity due to cold weather; 3) Languishing chorine & caustic prices; and 4) A $20mm increase in turnaround-related costs and a $25mm impact from the PHH VCM facility fire. On the plus side, AXLL has made strides on synergies and upped its YE ‘14 run rate target to $140mm ($100mm in Dec ‘13). Plus, PVC price hikes appear to be gaining traction.”

Axiall closed on Thursday at $43.44.