Deutsche Bank has downgraded H.B. Fuller from Buy to Hold, saying slowing growth and rising energy prices is not a good environment for chemical companies.
“With crude oil at $105 and Deutsche Bank forecasting a US recession and slower growth in Europe, the “perfect storm” of slowing growth and rising input costs is upon us. With downside risks to ’08 estimates, a 2H08 US recovery looking more tenuous and ’09 growth likely more subdued, we are lowering our rating to Hold from Buy,” says Deutsche Bank.