UPDATE: KeyBanc Upgrades Ashland

In a note released Monday morning, Keybanc analyst Michael Sison upgraded shares of Ashland (NYSE: ASH) from Hold to Buy and announced a $136 price target.

The following bullets are highlights behind Sison's upgrade:

• Expected annual earnings growth in the mid-teens from fiscal 2014 to 2016 fueled by cost savings and share buybacks. EPS estimates for 2014-2016 of $6.25, $7.30, $8.50, respectively.
• $200 million of cost savings over next two years.
• Anticipating $1.35 billion in buybacks funded by the sale of Applied Weather Technology.
• Improved operating margins from 11 percent now to 16 percent in 2015 due to new specialty Ingredients segment.