Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Tuesday, CFRA upgraded Lanxess AG (ETR:LXSG) (LXS:GR) (OTC: LNXSF) stock from Sell to Hold, adjusting the price target to EUR30.00, up from EUR20.00. The revision follows Lanxess’s announcement that it anticipates its fourth-quarter 2024 earnings to surpass market expectations. This forecast is attributed primarily to increased pre-buying activities by U.S. customers. The stock has shown remarkable momentum, gaining over 12% in the past week and trading near its 52-week high of $32.69. According to InvestingPro analysis, the company’s stock price is currently aligned with its Fair Value, suggesting balanced market pricing.
Lanxess expects its full-year 2024 EBITDA to be 20% higher than the previous year, positioning it at the upper end of its guidance range. For the fourth quarter of 2024, the company projects its EBITDA will be 22% above the consensus expectations. The company’s last twelve months EBITDA stands at $556.7 million, with a current market capitalization of $2.75 billion. Despite these positive developments, Lanxess has indicated that the macroeconomic conditions heading into 2025 are challenging and remain unchanged. InvestingPro subscribers can access 14 additional key insights about Lanxess, including detailed financial health metrics and growth indicators.
CFRA’s decision to upgrade the stock reflects a neutral stance as they continue to assess the impact of advance purchases on future performance. The firm has also revised its earnings per share (EPS) estimates for Lanxess, with the 2024 EPS forecast increased to EUR1.00 from EUR0.90 and the 2025 EPS projection decreased to EUR1.60 from EUR1.90. The new price target of EUR30.00 is based on a 2025 EV/EBITDA multiple of 7.6 times, which is slightly above the historical average for Lanxess. The company currently trades at an EV/EBITDA of 8.89x, with a current ratio of 1.96x indicating solid liquidity position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.