Lanxess stock downgraded to Sell by CFRA on persistent market weakness

Published 14/08/2025, 15:36
Lanxess stock downgraded to Sell by CFRA on persistent market weakness

Investing.com - CFRA downgraded Lanxess AG (ETR:LXS) (OTC:LNXSF) from Hold to Sell and lowered its price target to EUR21.00 from EUR27.00, citing persistent market weakness and uncertainty from trade disputes. The specialty chemicals maker, currently valued at $2.4 billion, shows a FAIR overall financial health score according to InvestingPro analysis.

The German specialty chemicals company reported a 6.6% decrease in H1 2025 sales to EUR3,067 million from EUR3,285 million in H1 2024. The decline resulted from negative price effects of 3.0% due to lower raw material costs, portfolio effects of 2.1% from the Urethane divestment, volume effects of 0.8%, and currency effects of 0.7%. Despite current challenges, InvestingPro data shows the company has maintained dividend payments for 19 consecutive years, with analysts expecting a return to profitability this year.

Despite the sales drop, Lanxess maintained stable EBITDA pre-exceptionals at EUR283 million in the first half, with margins expanding to 9.2% from 8.6% as the company benefited from FORWARD! cost savings across segments.

Lanxess management has lowered its 2025 EBITDA guidance to EUR520-580 million from the previous EUR600-650 million range, pointing to persistent weakness in its markets.

CFRA’s new price target corresponds to a 2025 P/E of 15x and EV/EBITDA of 7.6x, representing the lower end of Lanxess’s trading band over the last decade, with the analyst noting the stock should trade around its longer-term averages at a discount due to trade dispute uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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