SHW - Chemical Sector Outlook: Ecolab Linde and Sherwin-Williams Downgraded Amid Market Shifts | Benzinga
Seaport Research Partners analyst Michael J. Harrison downgraded a few chemical stocks ahead of their earnings release amid chemical industry's sluggish market fundamentals.
In the Chemical industry, the analyst anticipates destocking to run its course during H1 FY24, and several companies are projected to face easy comps after multiple quarters of unusually weak order patterns.
Harrison anticipates raw material costs to stabilize, and projects
price/cost to be a modest tailwind for most companies in H1 FY24, though many companies are suggesting price/cost to be more neutral in 2024.
Consequently, the analyst downgraded Ecolab Inc (NYSE: ECL), Linde PLC (NASDAQ: LIN), Sherwin-Williams Co (NYSE: SHW) to Neutral from Buy rating.
ECL: The analyst believes that many positive drivers for 2024 are already factored into the stock and modestly reduced the outlook to reflect the slower ramp-up in Healthcare and Life Sciences margin improvement, partly offset by higher foreign exchange ...