Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Merrill Lynch Downgrades Three Chemical Companies


Merrill Lynch downgraded Millennium Chemicals (MCH), NOVA Chemicals (NCX), and Lyondell Chemical (LYO) to sell from neutral.

Analyst Eric Serotta says the shares of each company are up 27% to 32% from March lows amidst expectations of sharp improvement in profitability from a post-war economic rebound and energy price decline. He expects the shares to trade lower in the near term as second-quarter earnings improve less than expected owing to weak volumes, rebounding hydrocarbon costs, and declining polyethylene prices.

While the rise in hydrocarbon costs could prevent a collapse in commodity petrochemical prices, he thinks margins will be squeezed either way. But Serotta says he thinks the companies have the liquidity to weather a downturn.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus