Barclays ups Evonik to 'overweight' as methionine turns into a tailwind

Evonik Industries AG

19/03/2026 09:17

** Barclays upgrades German chemicals firm Evonik EVKn.DE to "overweight" from "equal weight", saying Asian supply disruptions turn the methionine market into a positive catalyst

** The brokerage notes that logistical issues in Asia are reducing price competition for the essential amino acid for animal nutrition from Chinese rivals, giving Evonik a structural advantage as the largest producer outside the region

** A more resilient cost profile versus peers also supports the upgrade, Barclays says, with the company's hedging of around 80% of its energy costs shielding it from sector-wide raw material inflation

** It says that "methionine turning from a risk to a tailwind" is the key driver, as concerns over new capacity are now outweighed by tightening supply in Asia

 (Reporting by Orest Dovhan)

 ((Orest.Dovhan@thomsonreuters.com))