UBS Reiterates Buy Rating on Kraton Performance Polymers on Conservative Outlook

In a report published Friday, UBS Investment Research analyst John Roberts reiterated a Buy rating on Kraton Performance Polymers (NYSE: KRA).

In the report, UBS Investment Research noted, “We estimate DOW's sales are ~80% petroleum-based, split between oil- & gas-based raws. Gas-based chemical producers could enjoy near-peak cash flow for a while; oil-based ones should recover the most as demand improves. We believe KRA could transition from being viewed as a basic to a specialty chemical firm...We (and we believe, consensus) may have conservative outlooks for DOW and KRA, as both faced major headwinds recently (both have 2/3 of sales ex-N. Am.). Comps in Europe & Asia should become increasingly easy. For KRA, normal weather next year should provide easy comps for paving & roofing (30% of sales).”

Kraton Performance Polymers closed on Wednesday at $20.85.