Jefferies sees European chemicals' earnings below consensus, downgrades Symrise and Brenntag

Umicore SA

16/06/2025 09:19

** Jefferies sees the majority of its European chemicals coverage to require an above average 2H earnings contribution to reach forecasts

** Brokerage notes that portfolio change continues to be the one constant across the sector while U.S. Health Secretary Robert Kennedy Jr.'s MAHA agenda(Make America Healthy Again) gives re-rate potential for more food/health exposed companies

** Jefferies prefers exposure to consumer chemicals while it says diversified chemicals remain challenging given earnings delta relative to consensus

** It upgrades Syensqo and Umicore to "buy" from "hold", citing that it prefers businesses with relative pricing power in the current deflationary/weak demand environment

** Jefferies cuts Symrise and Brenntag to "underperform" from "hold" on ongoing volume and margin overhang and a risk of weaker topline growth respectively

     ** Symrise is seen down 2.71%, Brenntag down 1.27%, Brenntag down 1.27%, Umicore is up 4.8% and Syensqo up 2.3%

COMPANY
RATING
OLD RATING
Umicore UMI.BR
Buy
Hold
Syensqo SYENS.BR
Buy
Hold
Treatt TET.L
Buy
Buy
Clariant CLN.S
Hold
Buy
Arkema AKE.PA
Hold
Buy
Symrise SY1G.DE
Underperform
Hold
Brenntag BNRGn.DE
Underperform
Hold

 (Reporting by Cian Muenster)

 ((Cian.muenster@thomsonreuters.com))