The Globe and Mail reports in its Thursday edition that Desjardins Securities analyst David Newman cut Chemtrade Logistics Income Fund ($10.96) to "hold" from "buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Newman trimmed his share target by 50 cents to $11.50. Analysts on average target the shares at $12. Mr. Newman says in a note: "In 2020, we expect caustic soda prices to recover in 2H, given the positive impact of IMO 2020 and other demand drivers (also impacted in 2Q20 by a scheduled turnaround of CHE's North Vancouver facility), with HCl likely to benefit from a recovery in the energy markets. SPPC will have to manage through more turnarounds (e.g. a major turnaround at its Richmond, California, regen plant in 4Q). While merchant acid prices will likely remain stable/roll over, strong demand for regen and ultra-pure acid should continue into 2020. For WSSC, higher contract prices with municipalities and increasingly benign raw material costs should propel margins to similar levels realized several years ago. We are waiting for an update from CHE regarding the potential sale of selected specialty chemicals. We are taking a more cautious stance in the short to mid-term."
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