UPDATE: Deutsche Bank Downgrades Cytec Industries on Anticipated Limited Near-Term Outperformance
In a report published Tuesday, Deutsche Bank analyst David Begleiter downgraded the rating on Cytec Industries (NYSE: CYT) from Buy to Hold, but raised the price target from $85.00 to $90.00.
In the report, Deutsche Bank noted, “Cytec has positioned its portfolio for long-term growth over the past year with the divestiture of its low margin, low growth Coating Resins business, the acquisition of industrial composites manufacturer Umeco and the restart of its carbon fiber plant project. However, with Cytec shares up 31% over the past 12 months vs 16% for the S&P, we believe relative outperformance will be limited near-term as i) '14 will be a transition year for Cytec's crown jewel Aerospace Materials business (50% of segment EBITDA) with 6% (est) earnings growth and ii) '14 consensus is likely to move lower from its current $6.11 to our $5.70. With 6% upside to our $90 price target, we downgrade to Hold.”
Cytec Industries closed on Monday at $84.90.
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