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Dupont de Nemours (NYSE:DD), Eastman Chemical (NYSE:EMN) and Huntsman (NYSE:HUN) on Tuesday were downgraded to Hold from an investment rating of Buy by analysts at Deutsche Bank. They said they expect most U.S. chemical companies to meet or slightly miss “already lowered estimates” for the final quarter of 2022, and to offer a somber outlook.
Reducing built-up inventories, slower demand in Europe, the lack of an economic recovery in China and higher costs are among the challenges faced by the chemicals industry.
There are some bright spots, with Albemarle (NYSE:ALB) being named a short-term “catalyst buy.”
“We expect Albemarle will be one of the few chemical companies that can beat expectations for the quarter, driven by robust lithium pricing underpinned by tight supply/demand fundamentals,” David Begleiter, analyst at Deutsche Bank, said in a January 17 report.
