Piper upgrades six chemical stocks on feedstock cost shifts

Piper Sandler upgraded six names in the chemicals sector citing "significant and durable" shifts in global feedstock costs favoring U.S producers. Cost advantages for U.S. chemical producers have widened in recent months and will lead to a "synergistic expansion of margins," the analyst tells investors in a research note. The firm sees upside to earnings estimates from reduced feedstock costs, lower utility costs and the improving operating rates generated by export opportunities. As a result, Piper upgraded Eastman Chemical (EMN), Dow Inc. (DOW), Westlake (WLK) and LyondellBasell (LYB) to Overweight from Neutral. The firm also upgraded Celanese (CE) and Methanex (MEOH) to Neutral from Underweight.