UPDATE: Jefferies Downgrades Ecolab As Oil Volatility Increases

In a report published Monday, Jefferies analyst Laurence Alexander downgraded the rating on Ecolab (NYSE: ECL) from Buy to Hold, and lowered the price target from $128.00 to $120.00.

In the report, Jefferies noted, “The recent downdraft in oil prices implies a flatter petrochemical cost curve, less demand for NGVs, a downshift in energy infrastructure capex, and a margin tailwind for downstream chemicals. Tilt towards the consumer, away from the cracker, and stay wary of whipsaws in soy (biodiesel) and corn (ethanol).”

Ecolab closed on Friday at $108.95.