Berenberg ups Clariant to 'buy' on reduced litigation risks, 2027 earnings upside
BUZZ-Berenberg ups Clariant to 'buy' on reduced litigation risks, 2027 earnings upside ** Berenberg upgrades Swiss chemicals producer Clariant CLN.S to "buy" from "hold", citing reduced litigation risks and 2027 earnings growth potential
** Following the dismissal of Shell's SHEL.L bellwether case in July 2026, the broker sees a lower likelihood of similar ethylene purchaser cartel-related cases
** It reduces co's estimated litigation reserve to CHF 200 million ($246 million), down from CHF 900 million
** The broker expects improving foreign exchange trends and a gradual rebound in the catalysts segment, which has been weighed down by the U.S.-Iran conflict, potentially unlocking a further 15% upside to its annual earnings
** Clariant is less diversified than its peers but less exposed to the negative externalities caused by conflict-driven disruptions in the Middle East, the broker adds
** Out of 17 analysts that cover Clariant, one rates the stock "strong buy", eight "buy" and six "hold" - LSEG data
** Stock is at the top of Swiss mid-cap index .SMIM
($1 = 0.8118 Swiss francs)
(Conrad Kuepper)