Market Overview

BofA Upgrades Venator, Downgrades Celanese

Share:
BofA Upgrades Venator, Downgrades Celanese

Some commodity and diversified chemical stocks have surpassed their valuations, although there could be upside to 2021 estimates given the development of COVID-19 vaccines, according to BofA Securities.

The Chemicals Analyst: Steve Byrne downgraded Celanese Corporation (NYSE: CE) from Neutral to Underperform and raised the price target from $118 to $121.

The analyst upgraded Venator Materials PLC (NYSE: VNTR) from Underperform to Buy and raised the price target from $1.75 to $4.

The Chemicals Thesis: Commodity stocks may continue to outperform specialty equities, “though a next leg must be predicated on earnings traction,” Byrne said in a Monday note. 

Celanese’s stock is at record highs, which may be “difficult to sustain” given the “long path back to normal in part predicated on commodity margins,” the analyst said.

“This is particularly true as we think a contributor to outperformance has been the $500mn in committed 4Q share repurchases, a tailwind which should wane as we move to year-end,” he said. 

Referring to Venator Materials, Byrne said the upgrade comes “as traction in Asian TiO2 markets has closed the arbitrage window into Europe.

“With an improving supply balance in that market likely, Kronos has increased prices effective 1Q21 by $150/mt. We would expect others to join in with similar announcements. This price traction comes as line of sight into raw material deflation at VNTR has improved, allowing for further margin expansion.” 

Latest Ratings for CE

DateFirmActionFromTo
Jan 2021BMO CapitalUpgradesMarket PerformOutperform
Dec 2020Evercore ISI GroupDowngradesOutperformIn-Line
Dec 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for CE
View the Latest Analyst Ratings

 

Related Articles (CE + VNTR)

View Comments and Join the Discussion!

Posted-In: BofA Securities Steve ByrneAnalyst Color Penny Stocks Upgrades Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
RESNNeedhamMaintains6.3
SGMSTruist SecuritiesMaintains60.0
BYDTruist SecuritiesMaintains60.0
SQEvercore ISI GroupMaintains304.0
FFIVBarclaysMaintains235.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com