UBS Warburg Boosts Key Petrochemicals to 'Strong Buy'

Analyst Andrew Cash says chlorine chemicals sales will lead Georgia Gulf and Dow Chemical to a recovery

UBS Warburg upgraded Georgia Gulf (GGC ) and Dow Chemical (DOW ) to strong buy.

Analyst Andrew Cash says he's anticipating the earliest stage of the next cycle in EPS, and suggests investors begin accumulating chemical stocks with weighted position. He says an extreme inventory correction for chemical products may be nearing an end based on historical timing, intelligence cost push and the favorable economic outlook by purchasing managers. Cash expects chlorine chemicals to lead the chemical industry out of its trough EPS condition. He believes Georgia Gulf, like Dow, is a leveraged play on chlorine recovery. He has a $25 for both stocks.