Sector Snap: Specialty Chemicals Rise On Upgrade

But specialty chemicals also go into housing and electronic applications, two areas that have been battered heavily over the past year.

The entire economy is likely near a bottom and will bounce back soon, Koort said.

He did downgraded Ecolab to "Neutral" from "Buy," saying other specialty chemical makers offer a better investment.

"As signs of cyclical recovery are emerging and investors favor a much stronger cyclical tilt, we expect several other specialty chemical names in our coverage universe to outperform in the next several quarters," Koort said.

Shares of Ecolab fell 86 cents, or 2.3 percent, to $36.14 in afternoon trading.