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Investing.com -- Deutsche Bank (ETR:DBKGn) downgraded Brenntag AG (ETR:BNRGn) to “hold” from “buy,” on Wednesday and sharply lowered its price target to €52 from €75, a 30.7% cut.
The revision reflects concerns about the company’s increased cyclicality and exposure to pricing pressure, particularly within its Essentials segment.
The German chemical distributor recently reduced its EBITA guidance for 2025 from the previously indicated €1.1 billion - 1.3 billion range to €950 million – 1,050 million.
EBITA declined quarter-over-quarter in the second quarter, underscoring the impact of weakening pricing and volumes. Deutsche Bank now forecasts 2025 EBITA at €990 million, about 7% below consensus.
Analysts flagged Brenntag’s end-market exposure to more cyclical sectors and a lack of structural growth drivers, noting that these factors complicate the timing of any recovery despite the company’s underlying potential.
Shares of Brenntag were down 2.1% at 06:07 ET (10:07 GMT).