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On Friday, Kepler Cheuvreux adjusted its stance on Fuchs SE (FPE3:GR) (OTC: FUPBY), downgrading the stock from Hold to Reduce and setting a price target of EUR47.00. The change was prompted by a recent surge in the company’s shares, which have experienced a 13% increase year-to-date (YTD). The stock’s rise was attributed to the general enthusiasm surrounding classical chemical stocks in the market.
According to Kepler Cheuvreux, there are several reasons for the downgrade. The analysts expressed skepticism about Fuchs SE’s ability to outperform expectations in its fourth-quarter results. They also expressed concerns regarding the company’s earnings before interest and taxes (EBIT) guidance for the year 2025, which they fear might fall short of the previously set target of EUR500 million. This concern is based on negative developments from some of Fuchs SE’s key customers.
The research firm also pointed to the current valuation of Fuchs SE’s shares, which they consider high, even when compared to historical standards. Kepler Cheuvreux’s analysts believe that the stock’s current price no longer offers any potential for upside relative to their target price. This assessment led to the decision to downgrade the stock from Hold to Reduce.
The downgrade and price target suggest that Kepler Cheuvreux anticipates limited growth potential for Fuchs SE’s shares in the near future. The firm’s analysts have advised that the stock’s recent performance and market valuation do not justify a more optimistic rating at this time.
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