Exane sees mixed prospects for German chemical companies amid cyclical pinch

LANXESS AG

16/07/2025 12:25

** Exane BNP Paribas takes a differentiated view on German chemical companies as the sector feels cyclical pressures

** The broker says that survey data for European chemicals points to the risk of another guidance and consensus cuts for the sector

** It sees Evonik EVKn.DE as "relatively insulated" from downside risks due its superior cash generation and cost-savings plans

** The broker says Evonik is its preferred German cyclical name and initiates it at "outperform"

** In contrast, it starts Wacker Chemie WCHG.DE at "underperform" as it sees earnings pressures in the company's three out of four business line arising, among other factors, from Chinese competition

** The broker starts Lanxess LXSG.DE at "neutral" due to its overall high sensitivity to economic conditions and relatively inefficient cash flow generation

COMPANY
RATING
PT
LanxessLXSG.DE
neutral
EUR 25.00
Wacker ChemieWCHG.DE
underperform
EUR 52.00
EvonikEVKn.DE
outperform
EUR 22.00

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))