UPDATE: Jefferies Upgrades Ashland As Oil Volatility Increases

In a report published Monday, Jefferies analyst Laurence Alexander upgraded the rating on Ashland (NYSE: ASH) from Hold to Buy, and raised the price target from $123.00 to $147.00.

In the report, Jefferies noted, “The recent downdraft in oil prices implies a flatter petrochemical cost curve, less demand for NGVs, a downshift in energy infrastructure capex, and a margin tailwind for downstream chemicals. Tilt towards the consumer, away from the cracker, and stay wary of whipsaws in soy (biodiesel) and corn (ethanol).”

Ashland closed on Friday at $114.05.