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(ICIS) -- UBS upgraded its share rating
for Germany-based chemicals group LANXESS to “neutral” from “sell”, based on
expectations that demand for high-performance tyres will grow, the investment
bank said on Tuesday. “We believe high-performance-efficiency tyre take-up will
gather momentum from next year, driven by EU labelling,” Switzerland-based UBS
said.
In August LANXESS said that it expects the US, China and Brazil to
introduce regulations on tyre labelling within the next two to three years that
will boost the earnings of high-performance synthetic-rubber producers.
UBS said that the price of butadiene, which strongly correlates to the
earnings before interest, tax, depreciation and amortisation (EBITDA) of
LANXESS’ Performance Polymers division, is likely to remain high because of
tight supply driven by low levels of additional naphtha capacity.
mrcplast.com
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