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Fly News Breaks for January 29, 2020
AXTA, ASH
Jan 29, 2020 | 07:43 EDT
JPMorgan analyst Jeffrey Zekauskas downgraded Ashland Global Holdings (ASH) to Underweight from Neutral with a price target of $68, down from $74. Demand conditions for Ashland have softened since March 2019, Zekauskas tells investors in a research note. Volume contracted in its key large Specialty Ingredients segment in Q1, with the largest source of contraction in the Pharmachem sub-segment, where sales appear to be lower by about 25% for the second quarter in succession, adds the analyst. He thinks the current year trading multiple of 11.7 times for Ashland is high given that companies with comparable gross margins and EBITDA margins such as Axalta (AXTA) trade at less than 10 times EBITDA.