MS cuts Clariant citing longer way to recovery, shares fall

Evonik Industries AG

20/07/2026 09:12

** Shares in Swiss specialty chemicals maker Clariant CLN.S fall about 4% after Morgan Stanley downgraded the stock to "underweight" from "equal-weight"
** MS says negative earnings momentum is extending, citing slower growth in Clariant's catalyst business, which accounts for about 21% of group sales and 24% of adjusted EBITDA
** The broker says Middle East conflict-related force majeure declarations, plant shutdowns, feedstock challenges and logistical bottlenecks hit customer operating rates and catalyst refill orders
** MS sees risk of no material return of refill orders until 2027, especially with muted demand following March-May pre-buying activity
** MS adds Clariant's 2026 FCF yield looks uncompelling vs peers like Evonik EVKn.DE and Arkema AKE.PA until a likely recovery from 2027 onwards
** Out of 17 analysts covering Clariant, five rate it "strong buy" or "buy", ​ten "hold" and two​ rate "strong sell" or "sell" - LSEG data
     

(Reporting by Basile Day)
((Basile.Day@thomsonreuters.com))