Cytec shares fall; Goldman cites industry troubles

Cytec falls; Goldman recommends selling on 'bleak' industry outlook; uncertain Europe economy

Related Quotes

Symbol	Price	Change
CYT	37.62	+1.12

{"s" : "cyt","k" : "c10,l10,p20,t10","o" : "","j" : ""}

NEW YORK (AP) -- Shares of Cytec Industries Inc. tumbled Wednesday as an analyst urged investors to sell the specialty chemical maker's stock, citing expectations for an unfavorable outlook.

Cytec shares fell $2.03, or 5.5 percent, to $34.78, in midday trading.

Goldman Sachs analyst Robert Koort said the stock is too expensive. His 12-month price target is $31. He added the stock to the firm's "Americas Conviction Sell List."

Koort said Cytec is up against stiff headwinds, including a bleak outlook in the aerospace industry and economic uncertainties in Europe.

Lower build-rate expectations for business and regional jets will likely trim profits at the company's engineered materials franchise, Koort said. The division makes up more than a third of Cytec's earnings before interest and taxes. Koort also expects inventory destocking by parts suppliers to large aircraft producers, in anticipation of a market downturn from 2010 to 2011.

Adding to the pressure, Koort raised concerns about Cytec's geographic sales exposure, which is heavily focused on Europe. He expects a sluggish economic recovery in Europe in 2010, compared with Asia and the U.S.