Seaport Research downgrades chemicals trio to Neutral

As previously reported, Seaport Research downgraded Ashland (ASH), H.B. Fuller (FUL) and PPG (PPG), all to Neutral from Buy, and removed the firm’s prior price targets on the stocks as the firm has “less conviction around outperformance in a challenging environment” for the trio of chemicals names. Given heightened uncertainty around macro growth driven by trade policy, the firm suspects estimates on most companies need to come lower as the slow start to 2025 could worsen as a result of tariffs impacting demand. However, the firm adds that its concerns relate more to the impact on the global macro environment than to the direct impact of tariffs on input costs, which it thinks specialty chemical companies can manage through pricing and procurement.