NEW YORK (AP) — Shares of chemical companies were mixed Wednesday and Barclays Capital said that the stocks, which had a long climb that stalled earlier this year, still have room to grow.
The shares of many chemical companies surged between early 2009 and May of this year, but have fallen back since then as concern increased about the economy and demand for chemicals.
Barclays Capital, however, issued a bullish report Wednesday that was headlined, "The run's not done."
Barclays said prices and margins could weaken and some analysts might turn more bearish. "We believe, however, the recent rough patch and the potential noise over the next couple of months will come to be seen as just a correction," analyst Duffy Fischer wrote in a note to clients.
The Barclays analyst said the cycle for chemicals should remain strong into 2014. "Valuations are attractive and we would be buyers as others retreat," Fischer wrote in launching coverage of 10 stocks.
Dow Chemical Co. recently reported a 73 percent jump in earnings for the second quarter, beating analysts' forecasts, as prices and sales volumes increased from a year earlier. DuPont saw a more modest 5 percent increase in profit for the June quarter.
In trading Wednesday, Dow shares rose 19 cents to close at $28.45; DuPont gained 5 cents to $48.27; and PPG Industries Inc. climbed 11 cents to $76.59.
However, shares of Huntsman Corp. fell 15 cents to $13.11; and Eastman Chemical Co. dropped 26 cents to $82.73.
