Celanese, LyondellBasell slapped with Sell equivalent ratings at Credit Suisse

Jun. 27, 2022 1:21 PM ETCelanese Corporation (CE), LYBBy: Carl Surran, SA News Editor10 Comments

The Celanese corporation plant in Lanaken, Belgium. This corporation is a global chemica

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Celanese (NYSE:CE) and LyondellBasell (NYSE:LYB) turn lower in Monday's trading after Credit Suisse initiated coverage with Underperform ratings and respective $70 and $105.

Celanese (CE) is buying DuPont's specialty plastics unit, which will make the combined specialty plastics business among the largest and broadest in the world, Credit Suisse's John Roberts said, but Celanese's plastics business is "more leveraged to cyclical durables than Eastman's, does not have as significant a circular plastics program, and will be highly leveraged as risks of a recession rise."

Regarding LyondellBasell (LYB), Roberts notes that while basic chemicals typically peak late in an economic cycle after growth has absorbed excess capacity from the prior downturn, but basic chemicals have peaked early in this cycle, with lockdowns stimulating sales of goods combined with unusually high production curtailments from bad weather.

Celanese (CE) is "profitable, low risk, has growth potential, is likely to outperform, and has a robust R&D necessary for the chemical and material sciences business," Harold Goldmeier writes in a bullish analysis posted recently on Seeking Alpha.

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