NEW YORK (
) -- The market is reacting positively to chemical company
better-than-expected earnings in the fourth quarter and upbeat 2010 outlook.
Huntsman stock is trading 3.9% higher at $13.67 in early Monday trading.
On Friday, Huntsman
in the fourth quarter, though down from the previous year, and says its upbeat about 2010.
Huntsman said Friday it expects improving market conditions in 2010 and has a number of products in its pipeline that address energy concerns. Analysts expect the company to report earnings of 16 cents a share for 2010.
One such analyst, CreditSights, affirmed its overweight position on Huntsman because of its strong liquidity position, attractive spread levels and improving credit profile, while noting that Huntsman's management reiterated that it will remain financially prudent, opportunistically seek to repurchase debt securities and make small bolt-on acquisitions.
Regardless, the analyst firm says that the company will likely continue to experience margin pressure driven by rising raw material costs, and cautioned that there is some risk that the company may leverage its balance sheet to make a large acquisition, given that it continues to hold a significant liquidity position.
Basic materials stocks, on the whole, are trading in mixed territory Monday.
American Depository Receipts have edged 0.5% lower to $58 after the company's chief said it will not eliminate any jobs in France while the company reorganizes refining operations, according to
newswires. This reaffirms a promise to French officials a week ago.
is 0.5% lower at $15.20.
is down 0.3% at $24.90.
-- Reported by Andrea Tse in New York
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