JPM downgrades Evonik, Wacker Chemie as sector overcapacity threatens earnings

Evonik Industries AG

28/11/2025 10:18

** J.P. Morgan downgrades German chemical companies Evonik EVKn.DE and Wacker Chemie WCHG.DE, expecting sector overcapacity to create earnings pressure

** It cuts Evonik to "neutral" from "overweight", pointing to several large capacity expansions planned in China for commodity animal feed methionine over the next few years

** This could worsen the industry oversupply from 2028, exerting pressure on Evonik's pricing and margins, JPM says

** Evonik's methionine business is expected to bring in about a sixth of its 2025 adjusted EBITDA, the broker adds

** JPM lowers Wacker Chemie  to "underweight" from "neutral" due to substantial excess inventory of semiconductor wafers, which might cause significant destocking in the company's semi-grade business in 2026

** The issue "will put further pressure on earnings estimates given the continuing headwinds in the other key businesses", it adds

** Shares in Evonik and Wacker Chemie are down 1% and 4%, respectively

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))