(CercleFinance.com) – UBS reaffirms its ‘hold’ recommendation on Covestro with a price target reduced from 53 to 34 euros in the wake of a significant reduction in its projections for 2023: at 1.3 billion euros, its EBITDA assumption is 26% lower than consensus.
For 2022, the broker is positioned in the middle of management’s EBITDA target range (1.7 to 2.2 billion). He expects it at the upper end of the target range for the third quarter (300-400 million), but anticipates a significant sequential decline in the fourth.
‘Our estimates do not include a production cut due to a potential energy shortage in Europe,’ warns Stifel, who expects ‘negative newsflow around macro to weigh on the valuation’ of the chemical company German in the short term.
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