Suedzucker rises after Barclays double upgrade

CropEnergies AG

31/03/2026 09:10

** Shares of Suedzucker SZUG.DE rise 8.3% after Barclays double upgrades the German agricultural raw materials processing company to "overweight" from "underweight"

** Due to rising prices for both sugar and ethanol the broker projects an increase in profitability from 2027 to 2028

** The broker says that the conflict in the Middle East has raised demand for ethanol as an gasoline blend input, causing the operating earnings of Suedzucker's CropEnergies division to more than double in the near term

** As the higher ethanol prices incentivise rival sugar can producers in Brazil and Thailand to switch to ethanol, EU sugar prices will likely be raised in July causing a recovery in Suedzucker's sugar segment, the analyst adds

** The broker says the increase in prices will more than offset higher energy costs and demand effects from the Iran crisis

** Last but not least, Barclay's also forecasts a shift in consumer preferences towards high-fibre products offered by Suedzucker's subsidiary BENEO

** Suedzucker shares are up 44% year to date

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))