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Ashland started with Buy rating, $130 price target at UBS

Ashland (ASH +1.4%) is initiated with a Buy rating and $130 target price at UBS, which cites the recent sale of its non-core water treatment chemical unit, the announced $200M of cuts to reduce stranded costs, and the accelerated $1.35B stock buyback, which UBS models through 2015.

In the firm's view, plenty of firepower remains for more growth acquisitions, especially given the potential for further divestments.

UBS says it is highly confident in its near-term growth outlook given it is largely from less cyclical businesses and self-help initiatives (the cost savings and buyback).

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