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On Wednesday, Deutsche Bank (ETR:DBKGn)’s Tristan Lamotte revised the price target for Clariant AG (SIX:CLN:SW) (OTC: CLZNY), a specialty chemical company, reducing it to CHF10.50 from the previous CHF11.00. Despite the reduction, the Hold rating on the shares was maintained. This adjustment follows the company’s recent financial results, leading to a revision of the underlying EBITDA projections for the coming years.
Lamotte’s analysis indicated a decrease in the 2025 underlying EBITDA forecast by 5.3%, setting it at CHF 730 million, which is around 5% below the consensus before the results were announced. The estimated EBITDA for the first quarter of 2025 is CHF 178 million. Furthermore, the anticipated underlying EBITDA for 2026 to 2028 has been lowered by approximately 6%, factoring in expectations for reduced sales and margin assumptions.
The revised target price to CHF 10.5 per share comes as Clariant’s stock is trading at 7.1 times the estimated 2025 EV/EBITDA, which Deutsche Bank considers a fair valuation. The Hold rating suggests that the bank does not currently see significant upside or downside potential in the stock’s valuation.
In terms of sales growth, Clariant’s management has set a target of 3-5% in local currency terms for 2025, with the lower end of this range being more probable. This growth is anticipated to be driven primarily by the Care Chemicals and Adsorbents & Additives divisions, while the Catalysts segment is expected to remain stable. However, foreign exchange headwinds are projected to negatively impact sales by about 3% in 2025, which could result in essentially flat sales for the year. The underlying EBITDA margin for 2025 is forecasted to be between 17-18%.
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