RBC Capital raises PTs of commodity chemicals firms on China reopening

Huntsman

24/01/2023 16:54

** RBC Capital Markets raises PTs on commodity chemical
companies, citing upside potential if China improves
    ** Brokerage, however, expects continued weak demand in
Europe and Asia 
    ** Brokerage believes that higher raw material/energy costs,
moderation in feedstock costs and normalizing supply chain will
likely result in margin compression this year
    ** Expect stronger demand for Dow Inc's  DOW.N  film
plastics in the near term - RBC
    ** Westlake Corp  WLK.N  should continue to benefit from
strong market conditions across chlorovinyls, increased demand
growth in Asia post lockdowns, said RBC
 Company                   New PT        Old PT
 Dow Inc  DOW.N            $56           $46
 Westlake Corp WLK.N       $125          $113
 Olin Corp  OLN.N          $66           $60
 Huntsman Corp  HUN.N      $33           $28
 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))