China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
Investing.com -- European chemical stocks faced a harsher outlook as Deutsche Bank issued a downbeat assessment for 2026 and cut ratings and target prices across several companies, describing an extended downturn and limited signs of recovery.
According to analysts Virginie Boucher-Ferte and Tristan Lamotte, they said the industry is heading into 2026 with weak momentum as earnings trends continue to deteriorate.
The brokerage noted that the second half of 2025 set a low EBITDA run rate and wrote that consensus estimates, previously 10% above the bank’s projections, have begun to fall in line with the more pessimistic view. Deutsche Bank still remains about 5% below consensus for the cyclical names.
The report said valuations across the sector appear cheap and that growing investor capitulation has historically hinted at a bottom.
But the analysts warned that parts of the European chemicals industry face what they described as an “existential crisis,” adding that the lack of positive catalysts may leave the sector trading within a narrow range.
They reiterated a preference for higher-quality defensive companies and those with distinct corporate drivers, including Air Liquide, Akzo, Givaudan, IMCD, Novonesis and Kerry. Syensqo remained their preferred pick among the cyclicals.
Deutsche Bank upgraded Givaudan to “buy” and lowered several other ratings. Arkema was cut to “hold” from “buy” and its target reduced to €65 from €49. BASF was also downgraded to “hold” from “buy,” with its target trimmed to €45 from €51.
The bank maintained a “hold” on Evonik Industries and reduced its price target to €13 from €16. Kerry Group stayed at “buy,” though its target was lowered to €95 from €100.
Solvay was downgraded to “sell” from “hold” with its target eased to €24.50 from €25.50, while Wacker Chemie was also cut to “sell” from “hold” with the target moved to €60 from €63. Symrise remained at “buy,” though its target was reduced to €83 from €90.