Citi Reshuffles Chemicals: Winners and Losers

Citigroup analyst Patrick Cunningham made a sweeping round of target price changes in the chemicals sector on Wednesday, producing clear winners and one notable loser.

Sherwin-Williams got the biggest boost. Citi raised its target to $380 from $355, maintaining a Buy rating. The coatings giant carries a $79 billion market cap. Short sellers have little interest — SI sits at just 3.5% of free float.

Linde also won favour. Citi lifted its target to $600 from $585, keeping a Buy. The industrial gas leader commands a $237 billion market cap. With SI at just 1.4% of free float, bears are scarce.

PPG Industries received a more modest upgrade. Citi pushed its target to $125 from $114 while holding a neutral stance. The consensus average target now sits at $123.55.

The clear loser was International Flavors & Fragrances. Citi cut its IFF target sharply to $88 from $96, despite keeping a Buy rating. IFF's short interest is notably higher at 7% of free float. The consensus target has drifted down to $91.21.

The divergence reflects Citi's view that commodity-linked names with pricing power win. Specialty ingredient plays face more pressure.