KeyBanc Starts Stepan Company (SCL) at Hold
Get Alerts SCL Hot Sheet
Rating Summary:
2 Buy, 3 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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KeyBanc initiated coverage on Stepan Company (NYSE: SCL) with a Hold rating. Analyst Eugene Fedotoff noted large exposure to a low- to no- growth market.
"We are initiating coverage of Stepan Company (SCL-NYSE) with a HOLD rating. We believe that the Company’s Surfactants segment (70% of total sales) will continue to be negatively impacted by weak demand for surfactants in mature markets that account for ~80% of the segment’s sales. Growth in Surfactants is likely to be further reduced by a recent loss of a laundry customer in the United States, weakness in the ag market in North America and the absence of diesel revenues. We also believe that SCL will face headwinds from a secular decline in the phthalic anhydride market. On the other hand, the Company’s Polyols business should keep posting revenue and operating income growth due to an increase in global demand for insulation products; however, given the business’s relatively small size (~16% of revenues), stronger results in Polyols are likely to be offset by the headwinds in Surfactants."
For an analyst ratings summary and ratings history on Stepan Company click here. For more ratings news on Stepan Company click here.
Shares of Stepan Company closed at $49.29 yesterday.
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