18 January 2008 17:42 [Source: ICIS news]
TORONTO (ICIS news)--HSBC has cut its share price targets for Georgia Gulf, NOVA Chemicals and Westlake Chemical, saying on Friday it preferred chemical makers with better geographic and product diversity and lower exposure to the US.
The bank's analysts cut its target for ?xml:namespace>
A key factor was the firms’ relatively limited geographic and product diversity at a time when the industry was on "a march towards a commodity chemical cycle trough by 2011", HSBC said.
“Our analysis suggests that the companies most exposed to a slowdown in consumer demand are
Braskem was strong in high-growth
SABIC, for its part, should be able to offset any cyclical margin deterioration with strong volume gains from new capacities, the analysts said.
($1 = €0.68)
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