Olin price target lowered to $58 from $63 at BofA

BofA analyst Steve Byrne lowered the firm’s price target on Olin to $58 from $63 and keeps a Buy rating on the shares. The firm views Olin’s announcement of “drastic” capacity reduction in Q4 as “concerning” and the market seems to share that sentiment given the stock’s 9% decline on Friday, the analyst tells investors. While this belies worse than expected chlor-alkali fundamentals, the firm believes that Q4 is “likely the earnings floor” and that Olin’s “decisive actions” are likely to support caustic/chlorine prices, even if they come at an EBITDA expense.