Taminco rises after analyst sets 'Buy' rating

NEW YORK (AP) -- Shares of Taminco Corp. rose Tuesday after a Goldman Sachs analyst started covering the chemicals maker with a positive rating.

THE SPARK: Analyst Robert Koort started coverage with a "Buy" rating and a price target of $22. He said Taminco has a track record of stable growth that he expects will continue. He said Taminco does most of its business in steady markets like crop protection, animal nutrition, personal care, water treatment, and energy services, and does less business in industrial markets where demand can be more volatile.

"Taminco's business model, competitive position, and financial profile reflect a high-quality specialty chemical company," he said. Koort added that Taminco has higher profit margins than most other specialty chemicals companies, as well.

THE BIG PICTURE: Taminco produces alkylamines and alkylamine derivatives, chemicals that are used in manufacturing products a wide variety of markets. The Allentown, Pa., company turned a profit in the first quarter and completed its initial public offering in April.

SHARE ACTION: In afternoon trading Taminco stock picked up 95 cents, or 5.5 percent, to $18.35, after trading as high as $18.50 earlier in the session. The company's initial public offering of 15.8 million shares sold for $15 each on April 17, and the shares have since traded between $13.75 and $18.93.