Deutsche Bank lowers SGL Carbon stock price target on weak semiconductor demand

Published 19/08/2025, 10:04
Deutsche Bank lowers SGL Carbon stock price target on weak semiconductor demand

Investing.com - Deutsche Bank (ETR:DBKGn) has lowered its price target on SGL Carbon SE (ETR:SGL) (OTC:SGLFF) to EUR4.10 from EUR4.30 while maintaining a Hold rating on the stock.

The price target reduction follows SGL Carbon’s second-quarter 2025 results, which showed an 18% year-over-year decrease in revenue. The company’s performance was negatively impacted by continued muted demand from semiconductor customers, primarily due to volume effects.

The discontinuation of unprofitable Carbon Fibers business activities as part of the company’s restructuring program also contributed to the revenue decline. Despite cost-saving measures, SGL Carbon’s EBITDApre fell 12% as these savings were insufficient to offset the earnings loss from the decline in the high-margin semiconductor business.

Relative profitability improved with the EBITDApre margin reaching 17.8%, an increase of 107 basis points year-over-year. However, EBIT amounted to EUR -7 million in Q2 2025, compared to EUR 29 million in Q2 2024, weighed down by EUR 31 million in restructuring costs.

Free cash flow reached EUR 2 million in the second quarter of 2025, down from EUR 7 million in the same period last year, reflecting the challenging operating environment for the carbon and graphite products manufacturer.

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