Lithium producers downgraded, favor downstream chemicals for 2022 - Goldman Sachs

Livent

15/12/2021 12:15

** Goldman Sachs expects investors to continue shifting down
the chemicals supply chain more towards the hybrid/specialties
and defensive stocks in 2022
    ** Lithium producers Albemarle Corporation  ALB.N  and
Livent Corporation  LTHM.N  downgraded to "sell" from "neutral"
after GS finds current valuation multiples too high 
    ** "Current lithium equity outperformance will indeed end at
some point and a downcycle will arrive... timing of such an
outcome admittedly remains uncertain for now" - GS
    ** ALB and LTHM down 4.5% and 6.5%, respectively, premarket
    ** Brokerage optimistic on coating companies; expects
surprise bias to upside should inflationary pressures ease in
2022
    ** GS upgrades Huntsman Corp  HUN.N  to "buy" from "sell",
adding to its downstream positioning with other coatings,
industrial gas and specialty chemical stocks
    ** Among other rating changes, GS downgrades coatings co
Sherwin-Williams Company  SHW.N  to "neutral" from "buy" as it
passes their PT; upgrades Compass Minerals International  CMP.N 
to "neutral" from "sell" as it drops through their PT 
    ** CMP up 1.1% premarket
    ** Compass's ability to leverage existing infrastructure
suggests it can have faster-than-typical path to commercial
revenue in lithium - GS

 (Reporting by Bansari Mayur Kamdar in Bengaluru)
 ((BansariMayur.Kamdar@thomsonreuters.com;))