Jefferies upgrades Evonik stock rating to Hold on valuation grounds

Published 07/08/2025, 09:20
Jefferies upgrades Evonik stock rating to Hold on valuation grounds

Investing.com - Jefferies has upgraded Evonik Industries AG (ETR:EVKn) (ETR:EVK) (OTC:EVKIF) from Underperform to Hold, while lowering its price target to EUR17.50 from EUR18.80.

The upgrade comes despite Jefferies cutting its EBITDA estimates by approximately 5% following Evonik’s half-year results, with fiscal year 2025 forecasts now 2% below the low end of the company’s guidance range.

Jefferies cited valuation grounds for the rating change, noting Evonik now trades at a 20% EV/EBITDA discount compared to its historical 15% discount.

The research firm observed that Evonik continues to struggle in a weak demand and pricing environment, similar to other diversified chemical companies.

Jefferies’ forecast for Evonik remains high single digits below consensus estimates, with the firm expressing a preference for Syensqo among diversified chemical stocks.

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