Barclays on U.S. Chemicals: Lowering Earnings on Weak Demand (VAL, PX, PPG, LYB, DD, DOW, CE & APD)

June 13, 2012 1:22 PM EDT Send to a Friend
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Barclays on U.S. Chemicals: Lowering Earnings on Weak Demand

Analyst, Duffy Fischer, said, "Oil, China, and macro concerns conspiring to hit chemical earnings: Business conditions have deteriorated over the last 30-45 days according to our mid-quarter poll of numerous chemical companies, consultants, buyers and shippers of chemicals. Taking this into account, we are lowering earnings estimates on 8 of the 10 companies under coverage (we are restricted on Eastman Chemical (NYSE: EMN) and Sherwin Williams (NYSE: SHW) North American-centric footprint currently insulates it). The earnings hit for '12 ranges from 0% on SHW to 11% on DOW."

For Overweight rated Air Products (NYSE: APD), PT remains $101, but FY12 EPS estimate lowered from $5.60 to $5.44 and FY13 lowered from $6.25 to $6.15.

For OW rated Celanese (NYSE: CE), PT remains $60, but FY12 EPS estimate lowered from $4.50 to $4.35 and FY13 from $5.45 to $5.25.

For Equalweight rated Dow Chemical (NYSE: DOW), PT remains $36, but FY12 EPS estimate lowered from $2.70 to $2.40 and FY13 from $3.30 to $3.15.

For EW rated DuPont (NYSE: DD), PT remains $58, but FY12 EPS estimate lowered from $4.45 to $4.27 and FY13 from $4.70 to $4.50.

For OW rated LyondellBasell Industries (NYSE: LYB), PT remains $59, but FY12 EPS estimate cut from $4.80 to $4.63, but FY13 raised from $5.86 to $5.99.

EW rated PPG Industries (NYSE: PPG), PT remains $118, FY12 EPS estimate cut from $8.08 to $8.00 and FY13 cut from $9.06 to $8.75.

EW rated Praxair (NYSE: PX), PT $118, but FY13 EPS estimate cut from $5.90 to $5.75 and FY13 from $6.85 to $6.55.

EW rated Valspar (NYSE: VAL), PT $56, FY12 EPS Estimate lowered from $3.26 to $3.20 and FY13 from $3.63 to $3.60.




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