Olin Corporation (OLN) shares surged 5.31% in pre-market trading on Friday, following the company's better-than-expected first-quarter earnings report and positive analyst actions. The chemical manufacturer's strong performance comes as a welcome surprise to investors, given the challenging market conditions in the commodity chemicals sector.

Olin reported adjusted earnings of 5 cents per share for the quarter ended March 31, significantly outperforming the mean analyst expectation of a loss of 8 cents per share. The company's revenue also exceeded expectations, rising 0.5% to $1.64 billion, compared to the analyst consensus of $1.58 billion. This positive earnings surprise marks a turnaround from the company's recent financial struggles, as Olin's shares had fallen by 10.8% this quarter and lost 36.0% year-to-date prior to this report.

Adding to the positive sentiment, several analysts have raised their target prices for Olin stock. Mizuho increased its target price to $25 from $23, while UBS raised its target to $22 from $21. These upgrades suggest growing confidence in Olin's future prospects despite the current "hold" consensus among analysts. The company's ability to navigate challenging market conditions and deliver better-than-expected results has clearly impressed both investors and analysts alike, driving the stock's pre-market rally.