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Investing.com - Deutsche Bank downgraded Wacker Chemie AG (ETR:WCH) (OTC:WKCMF) from Hold to Sell on Monday, while lowering its price target to EUR60.00 from EUR63.00.
The bank cited several key risks facing the German chemical company, including increasing competition, commoditization, and threats to consensus earnings from non-repeating items.
Deutsche Bank also expressed concerns about poor solar polysilicon markets and noted that semiconductor polysilicon’s contribution is expected to increase only slowly.
The downgrade comes as Deutsche Bank sees risks in the chemicals sector remaining high amid trade uncertainty and persistent oversupply.
The bank highlighted that Wacker Chemie currently trades at 7.3x 2026E EV/EBITDA, representing a premium to peers, and forecasts a 3% average cut to earnings alongside potential multiple compression.
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