GS sees uneven recovery for European chemicals; ups Clariant, cuts Akzo

Novozymes A/S

01/07/2024 13:38

** Goldman Sachs favours consumer ingredient and gasses cos
over diversified chemicals and paint makers based on pricing
power, as the European chemicals sector faces an uneven recovery
    ** GS notes Europe's STOXX chemicals sub-index  .SX4P  is up
13% from its October 2023 trough, but recovery for companies on
it is going "even more unevenly" than it expected
    ** GS expects solid H1 beats from ingredients names driven
by volume growth and supportive price vs cost dynamics
    ** Meanwhile, industrial-facing firms have disappointed even
against muted volume expectations, it says
    ** For producers of gasses, better profitability should
compensate for a softer top line growth, it adds
    ** GS upgrades Clariant  CLN.S  to "buy" from "neutral",
saying it expects the Swiss group to pursue a strategy to
reposition itself as a consumer-focused company
    ** It cuts paint maker Akzo Nobel  AKZO.AS  to "sell" from
"neutral" on weaker volume outlook and tougher global pricing
environment

GS'S RATINGS:
 BUY                 NEUTRAL             SELL
 Clariant, Lanxess   Arkema  AKE.PA ,    Symrise  SY1G.DE ,
  LXSG.DE ,          BASF  BASFn.DE ,    Akzo Nobel,
 DSM-Firmenich       Evonik  EVKn.DE ,   Umicore  UMI.BR 
  DSFIR.AS ,         Croda  CRDA.L       
 Givaudan  GIVN.S ,                      
 Novonesis                               
  NSISb.CO , Air                         
 Liquide  AIRP.PA                        
 
 (Reporting by Anastasiia Kozlova and Amir Orusov)
 ((Anastasiia.Kozlova@thomsonreuters.com;
Amir.orusov@thomsonreuters.com))