BofA Analyst's Chemical Blend: Rating Change Saga, Reassesses Agricultural Market Dynamics
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Steve Byrne has made several rating changes for chemical companies, reflecting a selective bullish stance on commodity chemical stocks. Dow Inc (DOW) was upgraded to Buy with a price target of $60. Celanese Corporation (CE) was downgraded to Underperform with a price target of $135. FMC Corp (FMC) was downgraded to Underperform with a price target of $57. DuPont de Nemours Inc (DD) was downgraded to Underperform with a price target of $80. Ecolab Inc (ECL) was upgraded to Neutral with a price target of $216. The analyst expects a tough recovery in the sector with a focus on decarbonization and water management, and moderately reduced earnings estimates for U.S. chemicals stocks.
January 16, 2024 | 6:53 pm
News sentiment analysis
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NEGATIVE IMPACT
Celanese Corporation was downgraded to Underperform from Neutral with a price target increased to $135 from $124, despite a strong return in 2023.
The downgrade to Underperform suggests a negative short-term impact on Celanese Corporation's stock, as the analyst believes the current share price more than fully discounts the expected earnings recovery.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
DuPont de Nemours Inc was downgraded to Underperform from Buy with a price target increased to $80 from $78, reflecting modest earnings recovery and PFAS liabilities.
The downgrade to Underperform despite a higher price target suggests a negative short-term impact on DuPont's stock, as the analyst is concerned about modest earnings recovery and under-appreciated PFAS liabilities.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
FMC Corp was downgraded to Underperform from Neutral with a price target decreased to $57 from $60, due to uncertainty about near-term earnings recovery.
The downgrade to Underperform and reduced price target indicate a negative short-term impact on FMC Corp's stock, as the analyst lacks conviction about a near-term earnings recovery.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Dow Inc was upgraded to Buy from Hold with a price target increased to $60 from $57, indicating a positive outlook for EBITDA growth.
The upgrade to Buy and increased price target suggest a positive short-term impact on Dow Inc's stock as it reflects the analyst's confidence in the company's growth prospects.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Ecolab Inc was upgraded to Neutral from Underperform with a price target increased to $216 from $185, expecting benefits from pricing, business wins, and productivity focus.
The upgrade to Neutral and increased price target suggest a positive short-term impact on Ecolab Inc's stock, as the analyst expects the company to benefit from its strategic initiatives.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80