Citi Sweeps Through Chemicals With Bold Price Calls

Citigroup analyst Patrick Cunningham made a sweeping set of moves across the chemicals sector on Wednesday. The calls covered five stocks and sent several consensus targets higher.

Sherwin-Williams was the standout upgrade. Citi raised its target from $355 to $380, reiterating a Buy. The consensus now sits at $374. Sherwin carries a market cap of $79 billion. Short interest is low at 3.5% of free float.

Linde also got a bullish nudge. Citi lifted its target from $585 to $600, keeping a Buy. The $236 billion industrial gas giant trades well above the consensus average of $546. Short sellers show little interest, with SI at just 1.4% of free float.

Not all calls were positive. International Flavors & Fragrances took a target cut from $96 to $88. Citi kept its Buy rating but trimmed the outlook. Consensus has shifted lower to $91. IFF carries 7% short interest — the highest of the group.

PPG Industries got a modest target bump from $114 to $125 at a Hold. Simon Property Group also saw consensus targets edge up to $216.

The cluster of chemicals moves points to a sector re-rating. Analysts appear more comfortable with large industrial names but remain cautious on specialty ingredients.