UPDATE: Oppenheimer Downgrades Chemtura to Perform on Limited Upside to Margin Improvement

Oppenheimer downgraded Chemtura

from Outperform to Perform and removed the price target of $24.00. Oppenheimer noted, "CHMT continues to take significant strides structurally upgrading its business, the reason for our original Outperform, but things have changed to warrant a downgrade to Perform: 1) 2012 EPS growth of 29% was despite volume down 1%, and 4Q12 results showed that the company may be approaching the limits to further margin improvement without a healthier economy, thus we pare back estimates for 2013; 2) stock comp expense was previously understated, and 4Q saw a large $6M catch-up; 3) legacy overhead costs from the antioxidants sale will hamper margin; 4) mix deteriorated in petroleum additives; 5) 2013 capex needs are higher than expected; and 6) the stock was up 87% last year (vs. 13% for the S&P 500) and 3% YTD (vs. 4%)." Chemtura closed at $21.96 on Monday.