February 6, 2019 / 1:18 PM / 8 months ago

BUZZ-Cowen cautious on chemicals, warns 2H19 recovery underestimates industry issues

** Cowen & Co says recent subtle changes in chemical industry fundamentals has led to a cautious industry outlook

** Brokerage downgrades shares of DowDupont Inc, Celanese Corp, Eastman Chemical Co, Methanex Corp and AdvanSix Inc to “market perform” from “outperform”

** Cowen says the downgrades are based on revised outlook for chemical prices

** Industry view has become more circumspect in light of multiple risks which may constrain earnings, such as expanding supply/demand imbalance, strained feed-stock supply and logistics, low oil prices and slowing GDP growth especially in regions important to U.S. chemical trade - Cowen

** Cowen says as these headwinds become more apparent to investors, share performance will suffer as the longer term outlook eases, any recovery will be less robust than anticipated

** Among shares trading in premarket, DWDP fell 1.6 pct, EMN dropped 1.3 pct and CE was down 1.3 pct (Reporting by Shreyashi Sanyal in Bengaluru)

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