Broker snap: HSBC gives chemical stocks a boost on 2014 outlook

22nd Jan 2014 16:30

Upbeat comments from analysts at HSBC gave chemicals stocks a boost in London on Wednesday after they said that the sector will deliver double-digit growth in earnings in 2014.The bank believes that all regions should contribute to growth, while it sees upside risk to prices and margins."The valuation of the sector is not cheap but justifiable in our view as the overall market has re-rated by more," analysts said in a research note.HSBC raised its rating for Croda International from 'neutral' to 'overweight' and lifted its target price from 2,700p to 2,800p.Heavyweight Johnson Matthey also saw its target raised from 3,450p to 3,750p, though a 'neutral' recommendation was maintained.BC