Jefferies sees headwinds for SGL's Carbon Fiber and Graphite units
13/01/2025 13:39
** Jefferies cuts German carbon-based products maker SGL
Carbon SGCG.DE to "hold" from "buy" on cautious near-term
outlook for Carbon Fiber and Graphite units
** Although the broker endorses the idea of Carbon Fiber
business' divestiture, existing market conditions complicate the
process and may increase chances of unfavourable terms
** Slower growth in EV sales and weaker SiC (silicon
carbide) adoption rate have adversely affected demand for SiC
semiconductor products in SGL's graphite solutions business,
Jefferies notes
** EVs constitute the leading application for SiC
semiconductors, representing a substantial 70-80% market share,
the broker adds
** Shares, which fall around 3.7%, are on track for the
worst day since November
(Reporting by Amir Orusov)
((Amir.orusov@thomsonreuters.com))