Alex Roepers of Atlantic Investment Management recommended Huntsman Corp. as his best idea Wednesday during the Delivering Alpha conference.
The Woodlands, Texas-based company is a manufacturer of differentiated organic chemical products and of inorganic chemical products.
Shares jumped on his recommendation and were most recently up nearly 2.5 percent after rising 4 percent earlier.
Roepers said that as the company has discharged some parts of its operations it has grown more efficient and should provide handsome returns, which he set as up to 60 percent over the next 12 to 18 months.
"The key thing that has happened here at Huntsman is it's a new company," he said in remarks at the Delivering Alpha conference, presented by CNBC and Institutional Investor.
Huntsman has the potential to earn $4.40 a share, accounting for the upside price potential that Roepers cited.
He also said the company is a potential takeover target as well as an acquirer, though he expects it to return cash to shareholders in the meantime.
"Over time I think they made it loud and clear they want to make acquisitions," Roepers said. "I have a lot of faith in management doing the right thing with cash balances, cash flows that are coming."