European Chemicals Cos. May Face ‘Lousy’ 3Q, Baader-Helvea Says
2014-09-22 07:26:12.291 GMT
By Chiara Remondini
Sept. 22 (Bloomberg) -- European chemicals cos. may have
faced pronounced “summer lull” in Europe, no pick up in Sept.,
Baader-Helvea says in note after conversations with chemical
cos.
* Brokerage says FX tailwind probably only helped in Sept.,
seasonal pick-up after summer delayed into 4Q
* Sees “several disappointments” in 3Q, may come from cos.
with high y/y base effect such as BASF, Brenntag, DSM,
Syngenta
* Cos. with low y/y base may look better vs peers:
Clariant, Givaudan, Solvay
* Says “has feeling” after roadshows that investors are in
general underweighted in chemicals
* Investors started looking again at chemicals incl.
industrial gases; cos. which “came down massively”
such as Clariant, Fuchs Petrolub, Lanxess; still own
large caps like BASF
* Best demand in 3Q from automotive, electronics, pharma end
mkt
* Cos. with highest combined automotive, electronics,
pharma exposure are: EMS Chemie, Umicore (both not
covered), Fuchs Petrolub, Evonik, Solvay, Clariant,
Lonza, Bachem
For Related News and Information:
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
James Cone
2014-09-22 07:26:12.291 GMT
By Chiara Remondini
Sept. 22 (Bloomberg) -- European chemicals cos. may have
faced pronounced “summer lull” in Europe, no pick up in Sept.,
Baader-Helvea says in note after conversations with chemical
cos.
* Brokerage says FX tailwind probably only helped in Sept.,
seasonal pick-up after summer delayed into 4Q
* Sees “several disappointments” in 3Q, may come from cos.
with high y/y base effect such as BASF, Brenntag, DSM,
Syngenta
* Cos. with low y/y base may look better vs peers:
Clariant, Givaudan, Solvay
* Says “has feeling” after roadshows that investors are in
general underweighted in chemicals
* Investors started looking again at chemicals incl.
industrial gases; cos. which “came down massively”
such as Clariant, Fuchs Petrolub, Lanxess; still own
large caps like BASF
* Best demand in 3Q from automotive, electronics, pharma end
mkt
* Cos. with highest combined automotive, electronics,
pharma exposure are: EMS Chemie, Umicore (both not
covered), Fuchs Petrolub, Evonik, Solvay, Clariant,
Lonza, Bachem
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
James Cone