Ashland ( NYSE: ASH ) and Huntsman ( HUN ) on Monday were both rated as Outperform in an initiation report by Credit Suisse. The bank said integrated makers of chemicals face fewer difficulties with obtaining raw materials than non-integrated companies do.
“Integrated specialties have the volume defensiveness and growth of specialty chemicals and currently are capturing some of the commodity upcycle through their internal basic chemical operations,” John Roberts, analyst at Credit Suisse, said in the report.
Credit Suisse has a price target of $120 a share for Ashland and $33 for Huntsman.
Ashland rose 2.3% to close at $104.58 a share on Monday, while Huntsman climbed 2.8% to $28.05.
Ashland has slipped 1.4% this year, while Huntsman has declined 21%, compared with a 14% decrease for the S&P 500 Stock Index ( SP500 ).
Seeking Alpha contributor Another Mountain’s Rock Investing has a Buy rating on Ashland ( ASH ) because of its improved balance sheet . Columnist Fade the Market rates Huntsman ( HUN ) as a Buy on its valuation .
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Ashland, Huntsman rated as Outperform in Credit Suisse initiation