Ahead Of The Bell: Cytec Upgraded To 'Buy'

NEW YORK (AP) — Cytec Industries Inc. is positioned to grow on rising demand from its coatings-resins segment and long-term strength from its engineered-materials segment, said an analyst on Monday as he upgraded the specialty chemicals maker's stock.

KeyBanc Capital Markets' Michael Sison said profits from Cytec's coatings-resins will rise given its improving cost structure and stronger demand, especially from automotive and European markets. As for the engineered materials segment, its near-terms results won't bolster growth, but its long-term outlook remains positive, given increased usage of carbon fiber in aircraft production.

Sison upgraded Cytec to "Buy" from "Hold" and significantly raised his 2010 earnings estimate to $1.70 per share from $1.40 per share. Analysts polled by Thomson Reuters also predicted a 2010 profit of $1.70 per share.

Cytec shares closed rose 30 cents higher to $33.12 Friday.