HSBC cuts Wacker Chemie to 'hold' on polysilicon margin worries

GCL Technology Holdings

09/03/2022 10:09

** HSBC downgrades Wacker Chemie  WCHG.DE  to "hold" from
"buy" as it believes the German chemical company's margins in
the solar industry could come under pressure
    ** Wacker is strongly exposed to solar through its
production of polysilicon (poly), which is used in solar wafers
    ** "We believe higher input costs could increase the poly
margin squeeze from H2 2022," HSBC adds
    ** The broker says it prefers GCL-Poly  3800.HK  and
Zhonghuan  002129.SZ  among Asian names
    **    Out of 20 analysts that cover Wacker Chemie, 11 rate
the stock "strong buy" or "buy," ​eight rate "hold" and one
rates the stock "strong sell"

 (Reporting by Alexander Kloss)
 ((alexander.kloss@thomsonreuters.com))