Daily Chemical Reaction
I Want To Hold Your Hand – Corporate Guidance Cuts Drive Street Estimates Lower, More Reductions Ahead
- Sell-side equity research has become less about quality research than providing corporate concierge services – more estimate cuts are needed, but it could take time.
- We discuss the global surplus of ethylene feedstock, as Ex-US naphtha values reflect an unusual discount to crude oil, and USGC ethane reflects a discount to natural gas.
- Huntsman downgrades its 3Q profit views, adding itself to a growing list of producers highlighting weakening business conditions – the trend will likely continue into 4Q22.
- Investment capital targeting the clean energy sector is notably risk averse, with most only looking at “oven ready” projects – we view this as a risk to many growth targets.
- FedEx slashed 3Q22 profit expectations and offers a dire view of the global economy, and we discuss recent food inflation, mortgage rate, and US dollar developments.
See PDF below for all charts, tables and diagrams