CTVA - Axalta cut at KeyBanc as chemical stocks no longer 'inexpensive'

KeyBanc maintains an Overweight stance in the chemicals sector for 2021, but the stocks are no longer "inexpensive," analyst Aleksey Yefremov says, downgrading Axalta Coating ([[AXTA]] -3.0%) to Sector Weight from Overweight, citing a sharp increase in raw materials costs that likely will pressure margins.Yefremov expects Axalta will post solid Q4 results but that a large portion of cyclical recovery in the company's demand is close to being priced-in.The firm sees the most attractive risk/reward in sector for Huntsman ([[HUN]] -2.3%), Celanese ([[CE]] -2.3%) and PQ Group ([[PQG]] -1.7%), while remaining cautious on LyondelBasell ([[LYB]] -3.5%), Dow ([[DOW]] -3.0%) and Westlake Chemical ([[WLK]] -1.8%).Yefremov also maintains an Overweight rating on DuPont ([[DD]] -1.4%) and Corteva ([[CTVA]] -2.1%) but sees a tough near-term setup as valuation will require fundamentals to catch up.Chemical stocks have a "clear runway" to outperform the broader market in 2021 as macro-economic conditions continue to improve, BMO said

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Axalta cut at KeyBanc as chemical stocks no longer 'inexpensive'