UBS Warburg Ups Millennium Chemicals to 'Buy'

Analyst Andrew Cash says the specialty chemical maker's stock price is at a sharp discount

UBS Warburg upgraded Millennium Chemicals (MCH ) to buy from neutral.

Analyst Andrew Cash says Millennium's stock price has eroded so much recently that he now estimates a total return of 21.6% in the next 12 months. Cash sees a potential recovery at the company's Equistar venture. He thinks Milennium's price increases, lower feedstock, and lower energy costs later in the year will offset near-term pressures in the gas market.

Cash raised his 81 cents 2003 earnings per share estimate to 85 cents, and upped the $2.03 2004 estimate to $2.05. He maintains his $12 target.

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