Deutsche Bank downgrades Brenntag stock to Hold on cyclicality concerns

Published 16/07/2025, 09:18
Deutsche Bank downgrades Brenntag stock to Hold on cyclicality concerns

Investing.com - Deutsche Bank (ETR:DBKGn) downgraded Brenntag AG (ETR:BNRGn) (ETR:BNR) (OTC:BNTGY) from Buy to Hold on Wednesday, while significantly reducing its price target to EUR52.00 from EUR75.00.

The downgrade reflects Deutsche Bank’s concerns about Brenntag’s heightened cyclicality compared to specialty distributors, particularly within its Essentials segment, which faces increased exposure to current pricing pressures.

The German chemical distributor recently reduced its guidance from the lower range of EUR1.1-1.3 billion to EUR950-1,050 million, highlighting ongoing pricing and volume pressures, while its EBITA declined quarter-over-quarter in Q2.

Deutsche Bank noted that Brenntag’s end-market exposure is skewed toward more cyclical sectors with fewer supportive structural drivers, creating timing challenges despite the company’s potential.

The bank’s 2025 EBITA forecast for Brenntag now stands at EUR990 million, approximately 7% below consensus estimates.

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