Kepler Cheuvreux cuts SGL Carbon to 'hold' on cloudy short-term outlook

SGL Carbon SE

25/03/2025 09:49

** Kepler Cheuvreux downgrades the German carbon-based products manufacturer SGL CarbonSGCG.DE  to "hold" from "buy" as the company's short-term outlook remains clouded

** The analyst does not expect a recovery in the electric vehicles segment in 2025, which therefore impacts its silicon carbide unit and delays the sale of the carbon fibres business

** The carbon fibres segment will also absorb EUR 50m in one-off payments as it undergoes restructuring until 2026, the broker adds

** The process technology segment is projected to continue on strong margins, however SGL Carbon points to the loss of a major contract and the dependence on the automotive sector as a market

** Kepler Cheuvreux says "in the medium to long term, the prospects remain attractive" as SGL continues to dominate the competitive landscape in key segments

 (Reporting by Simon Ferdinand Eibach; Editing by Amanda Cooper)

 ((Simonferdinand.eibach@thomsonreuters.com))