Jefferies sees 'more constructive' diversified chemicals outlook in 2025, but challenges in agriculture

K+S AG

13/11/2024 09:00

** Jefferies says it approaches 2025 with some changes to
its view on European chemical subsectors, expecting a more
constructive outlook for diversified chemicals, but still
challenging demand in agriculture
    ** The outlook for European diversified and commodity
chemical companies is becoming more constructive for the first
time in three years on improved volumes and product spreads, it
says
    ** It ups chemicals giant BASF  BASFn.DE  to "buy" from
"hold", downgrades German chemicals group Evonik  EVKn.DE  to
"underperform" from "hold"
    ** It says it prefers industrial gases over consumer
chemicals on improving relative growth and pricing power
    ** It double-upgrades French industrial gases supplier Air
Liquide  AIRP.PA  to "buy", while it downgrades German flavour
and fragrance maker Symrise  SY1G.DE  to "hold"
    ** It still sees challenges in agriculture end markets,
namely overall still high crop inventory and continuing price
competition, pressured farmer environment and unfavourable
economics of European production assets across fertiliser
producers
    ** It cuts German potash and salt miner K+S to
"underperform" from "hold"
    ** Shares in K+S, Symrise and Evonik slide between 1.2% and
1.5%, Air Liquide rises 2%

 (Reporting by Linda Pasquini)
 ((Linda.pasquini@thomsonreuters.com))