Investment Rating - The report maintains a constructive outlook on IG Financials, suggesting they are a sweet spot relative to Corporates, while also indicating a cautious stance on Energy and Basics due to tariff vulnerabilities [2][11]. Core Insights - The baseline scenario anticipates gradually slowing global growth for H2'25, with spreads expected to remain rangebound due to healthy balance sheets and low default rates [2][3]. - The European private credit market is highlighted for its robust fundamentals and significant liquidity, which is expected to suppress hard defaults [2][15]. - The report emphasizes the importance of sector-specific dynamics, noting that IG Financials have shown resilience amid geopolitical risks, while sectors like Energy and Basics are more sensitive to tariff headlines [8][11]. Economic Data and Tariff Rulings - Recent economic data from the EU and US have surprised positively, challenging initial recessionary scenarios, with EU GDP projected to halve to 0.4% in 2025 under a downside scenario involving tariffs [3]. - The report suggests that spreads may peak in Q3'25 around 120/425bp but could tighten by year-end, supported by monetary policy and resilient fundamentals [3][4]. ECB Policy Outlook - The ECB is expected to cut rates by 25bp to 2.0% in June, with another cut anticipated in July, reflecting a prioritization of growth support amid trade tensions [4]. - The report indicates that the ECB may remain in a gradual easing mode due to legal complexities surrounding US tariffs, which could reduce immediate downside risks [4]. Spread Dynamics - In May, PMIs softened, yet manufacturing activity trended higher, supporting risk sentiment despite ongoing trade uncertainties [5]. - The report notes that spreads widened in an orderly fashion around tariff announcements, with limited panic selling observed [8]. Sector Analysis - The report identifies that IG Financials exhibited lower beta during spread widening, while IG Energy and HY Basics were the most sensitive to tariff headlines [8]. - In the Energy sector, firms with robust balance sheets are better positioned against global demand fragility, while those with higher leverage face more exposure [9]. Technicals and Market Dynamics - The report highlights a record-breaking month for IG Corps supply in May, driven by positive tariff news, which pushed spreads tighter [14][39]. - It anticipates that flows will remain orderly, targeting high-quality structures and issuers, reflecting a cautious investor appetite [14]. European Private Credit Outlook - The report notes that European private credit shows resilience with rising revenue and EBITDA, alongside improving interest coverage ratios [15]. - It suggests that ample dry powder is available to support liquidity and suppress hard defaults in the private credit space [15].

Investment Rating - The report assigns an "Overweight" rating to Novonesis with a price target of DKK 577.00, indicating a positive outlook for the stock [6]. Core Insights - The report emphasizes that Novonesis is well-positioned to capture structural growth drivers, which could lead to an EBITDA margin expansion of 120 basis points from 2026 to 2028 [1]. - Concerns regarding the company's sensitivity to oil price volatility and mid-term growth expectations are addressed, with the report suggesting that operational gearing and unique offerings can mitigate these concerns [1][2]. - The report discusses the potential for Novonesis to exceed consensus expectations, particularly in EBITDA margins, driven by conservative volume drop-through assumptions and pricing growth [2][10]. Summary by Sections Growth Expectations - The report highlights a debate on whether Novonesis can surpass consensus expectations, with a focus on margin uplift forecasts for 2025 to 2027 [8]. - It is noted that the company is guiding for a 1% pricing growth, which is crucial for achieving higher margins [9]. Market Dynamics - The report interprets Nielsen data differently, suggesting that technology and innovation are favoring Novonesis in developed markets, while emerging markets are expected to grow at higher rates due to increased penetration and effective market strategies [3][17]. - The growth in bio-energy is discussed, indicating that recent trends show a decoupling from oil price dependence, with corn-ethanol economics being a significant factor for continued growth [4][22]. Financial Projections - Financial projections for Novonesis include expected sales growth from €3,946 million in 2024 to €4,889 million by 2027, with EBITDA increasing from €1,072 million to €1,963 million in the same period [6]. - The report anticipates a net debt of €2,619 million by the end of 2025, with a net debt to EBITDA ratio of 1.6 [6].

Core Insights - Dow Inc. (DOW) has agreed to sell its 50% stake in DowAksa Advanced Composites Holdings BV to its joint venture partner Aksa Akrilik Kimya Sanayii A.S. for an estimated $125 million, reflecting an enterprise value of approximately 10 times the projected 2025 operating EBITDA [1][9] - The divestiture aligns with DOW's strategy to focus on its core, high-value downstream businesses, and is expected to close in the third quarter of 2025 [2][9] - DOW's stock has experienced a significant decline of 47.1% over the past year, compared to a 24.9% decline in the industry [3] Financial and Strategic Actions - DOW remains committed to disciplined execution and enhancing profitability while addressing macroeconomic and geopolitical uncertainties, including delaying the construction of the Fort Saskatchewan Path2Zero project [4] - The company is expanding its review of European assets, particularly in polyurethanes, to tackle challenging demand conditions and regulatory issues, with expected cash support of around $6 billion from these actions [5] Market Position - DOW currently holds a Zacks Rank of 4 (Sell), while other companies in the Basic Materials sector, such as Akzo Nobel N.V. and Newmont Corporation, have higher rankings, indicating better market performance [6]

Core Insights - Dow Inc. is set to launch a wider range of skin, hair, and color cosmetics, including its first low-carbon silicone elastomer blends under the Decarbia platform at the New York SCC Suppliers' Day 2025 [1][7] - The new product offerings are designed for various applications such as conditioning, styling, cleansing, and sun care, emphasizing sustainable and high-performance formulations [1][7] Product Launch Details - The company will introduce four low-carbon DOWSIL Silicone Elastomers Blends, achieved through the decarbonization of silicon metal feedstocks, supported by verified carbon compensation certification and third-party environmental assessments [2] - Additional prototypes will be unveiled under the theme 'From Shower to Sensational,' including a formulation kit, low viscosity conditioning agent DEXCARE CD-2 Polymer, hair styling polymer ACUDYNE 2000, and ACULYN F1 Polymer for smooth flow and clarity [3] - The launch will also feature the "ProtecTress 2.0 program," which focuses on effective hair heat protection options [3] Market Performance - Dow Inc.'s stock has experienced a significant decline of 46.9% over the past year, compared to a 25.7% decline in the industry [5] - The company currently holds a Zacks Rank of 4 (Sell), indicating underperformance relative to peers [6]

Core Viewpoint - BASF SE is set to acquire DOMO Chemicals' 49% stake in the Alsachimie joint venture, which will grant BASF full ownership of the JV, enhancing its position in the polyamide 6.6 value chain [1][2] Group 1: Acquisition Details - BASF currently holds a 51% stake in the Alsachimie joint venture and plans to acquire the remaining 49% from DOMO Chemicals [1] - The transaction will undergo consultations with Alsachimie's relevant social bodies before a binding purchase agreement is signed, with an expected closure by mid-2025 [1][2] Group 2: Strategic Implications - Full ownership of Alsachimie will strengthen BASF's operations at its Chalampé site in France, a key hub for polyamide 6.6 precursor production [2] - With sole control, BASF aims to enhance production efficiency and deepen backward integration into critical raw materials, solidifying its presence across the entire PA 6.6 value chain [2] Group 3: Market Position and Performance - The acquisition reinforces BASF's leadership and commitment to the PA 6.6 value chain, positioning the company for future growth in industries such as automotive and textiles [3] - BASF shares have declined by 7.9% over the past year, compared to a 28.4% decline in its industry [3]

Core Viewpoint - LyondellBasell Industries is experiencing a stock decline due to a prolonged cyclical downturn in the plastics, chemicals, and refining sectors [1] Group 1: Company Overview - LyondellBasell Industries is a leading player in the plastics, chemicals, and refining industries [1] - The company has been navigating challenges that have led to a decline in stock performance over the past few years [1] Group 2: Market Context - The company is currently facing a prolonged cyclical downturn, impacting its financial performance and stock value [1]

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework emphasizes identifying companies with durable business models, mispriced cash flow potential, and intelligent capital allocation [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability and simplicity [1] Group 2 - Research coverage targets underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing actionable insights and a strong filter for relevant information in equity analysis [1]

Group 1: Sustainability Achievements - DuPont de Nemours, Inc. has achieved 100% grid electricity from renewable sources across its entire European Union operations, marking a significant milestone towards its goal of net-zero carbon emissions by 2050 [1][2] - The transition involved the installation of on-site solar panels and the purchase of Renewable Energy Certificates (RECs) at 13 manufacturing sites in the EU, emphasizing the company's commitment to environmental protection [2] Group 2: Financial Performance and Projections - For the second quarter, DuPont projects net sales of approximately $3.2 billion, operating EBITDA of around $815 million, and adjusted earnings per share of about $1.05, indicating a seasonal sequential increase in sales [6] - The company has maintained its full-year guidance for 2025, reflecting confidence in its operational performance [6] Group 3: Stock Performance - DuPont's stock has declined by 13.2% over the past year, which is a better performance compared to the industry's decline of 25.8% [5]

Group 1: Company Innovations and Offerings - BASF SE is set to showcase innovative technologies for electromobility at The Battery Show Europe 2025, focusing on enhancing performance in electrified powertrain concepts and sustainable automotive mobility solutions [1] - The company offers cathode active materials (CAM) that enhance battery efficiency, reliability, costs, durability, and size, along with solutions for battery recycling [2] - BASF will present flame-retardant engineering plastics, adhesive solutions for next-gen batteries, and innovative coating solutions using CathoGuard and Oxsilan technology to address challenges in battery cell manufacturing [3] Group 2: New Product Introductions - BASF will introduce Path.Era, a scalable ecosystem for digital battery passports, enabling full traceability and circularity in the battery value chain [4] - The company will also showcase OPPANOL, a cathode binder for solid-state batteries, aimed at reducing electrochemical disturbances and improving performance [4] Group 3: Stock Performance - BASF's stock has declined by 6.8% over the past year, while the industry has seen a larger decline of 26.8% [6] - BASF currently holds a Zacks Rank of 3 (Hold), with better-ranked stocks in the Basic Materials sector including Akzo Nobel N.V., Newmont Corporation, and Balchem Corporation [7]

WESTPORT, Conn., May 22, 2025 /PRNewswire/ -- Gemspring Capital Management, LLC ("Gemspring"), a middle-market private equity firm, is pleased to announce that an affiliate has entered into a definitive agreement to acquire The Goodyear Tire & Rubber Company's (NASDAQ: GT) ("Goodyear" or the "Company") polymer chemicals business ("Goodyear Chemical" or the "Business"). The acquisition includes two operating plants located in Houston and Beaumont, Texas, and a research and development facility located in Akr ...