Mitsui Chemicals downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Atsushi Ikeda downgraded Mitsui Chemicals to Neutral from Buy with a 4,090 yen price target. The company’s Q1 core profits were ahead of estimates thanks to stronger profits from the petrochemicals business in the basic & green materials segment, the analyst tells investors in a research note. The firm is cutting its forward outlook however, reflecting downward revisions to demand assumptions for ICT solutions, higher fixed costs, and elevated price decline risk for Tafmer – the biggest profit driver in FY3/24 – as supply/demand conditions loosen, Goldman Sachs added.