Demand in the commodity sectors is a bit more fragile than it was, says Timna Tanners of Bank of America Merrill Lynch, and the macroeconomic outlook remains humbling.
The No. 1 analyst in the sector, J. Michael Webber of Wells Fargo Securities, is bullish on product and crude tankers and recommends companies with sustainable cash flow growth and strong balance sheets.
Evercore ISI’s Umer Raffat, the sector’s No. 1 analyst, is unabashedly bullish on speciality pharmaceuticals manufacturers, citing reasonable valuations and a high number of takeover targets.
Jamie Cook of Credit Suisse, the sector’s most highly regarded researcher, says now is a good time for longer-term investors to pick up quality names at reasonable valuations.
