Investing.com — BofA revised ratings on chemical stocks amid a diverse chemical end markets and changed risk/reward views after a 15% sell-off in the sector in fourth quarter.
Celanese (NYSE:CE) was upgraded to “Buy” from “Underperform” with a price target of $88, down from $95. Analysts see signs of a bottoming acetyls market and improving demand ahead, with free cash flow supporting leverage.
Eastman Chemical (NYSE:EMN) received a similar upgrade to “Buy,” despite a tough year for commodity chemicals. Its PT was lowered to $109 from $115, but valuation and growth prospects, particularly in methanolysis, appear attractive.
Olin Corp (NYSE:OLN) moved to “Buy” from “Neutral” with a PT cut to $40 from $48. The company benefits from strong free cash flow and a rebound in caustic soda prices and epoxy volumes.
FMC Corp (NYSE:FMC) was upgraded to “Neutral” from “Underperform” with a PT adjustment to $61 from $63. Recovery challenges remain, but improved EBITDA growth in 2025 is expected.
Element Solutions (NYSE:ESI) was downgraded to “Neutral” from “Buy,” with a PT reduction to $28 from $32, citing weaker electronics demand and currency headwinds.
Origin Materials was downgraded to “Underperform” with a PT slashed to $1.50. Doubts persist over the licensing of its cellulose-based technology amid strategic and financial concerns.
Archer-Daniels-Midland Company (NYSE:ADM) was downgraded to “Underperform” citing little upside on the stock.
