GS prefers paints to gases in a deflationary environment

Chr Hansen Holding A/S

28/11/2022 10:53

** Outlook is reversing for chemicals, Goldman Sachs says, 
expecting an outright deflationary set-up into H1 2023, where it
sees paints as deflation beneficiaries 
    ** It sees potential for a restocking cycle to support
industry volumes from 2023 as periods of disinflation have led
to better demand as consumer sentiment and purchasing power
improve
    ** The brokerage recommends choosing deflation-winning
paints such as "buy"-rated Akzo Nobel  AKZO.AS  instead of
inflation-winning industrial gases such as "neutral"-rated Air
Liquide  AIRP.PA  
    ** GS raises Lanxess  LXSG.DE  to "buy" from "neutral"
seeing better rewards than risks citing strong working capital
relief
    ** The broker downgrades Symrise  SY1G.DE  to "neutral" from
"buy" post the 12% outperformance year-to-date versus
ingredients peers
    ** It names Covestro  1COV.DE  its top pick for a potential
demand recovery, while Chr Hansen  CHRH.CO  its top pick for
discounted quality, and keeps both at "buy"
    ** GS reiterates "sell" on Evonik  EVKn.DE , Givaudan
 GIVN.S , and Novozymes  NZYMb.CO 
 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))