Covestro: Stifel slashes target price

(CercleFinance.com) - Stifel maintains its neutral rating on Covestro, having slashed its target price from 53 euros to 34 euros after significantly reducing its forecasts for 2023: at 1.
3 billion euros, its EBITDA assumption is now 26% below consensus.

For 2022, the broker is positioned in the middle of the management's EBITDA target range (1.7 to 2.2 billion). It expects it to be at the high end of the target range for Q3 (300-400 million euros), but anticipates a significant sequential decline in Q4.

Analysts' estimates do not include a reduction in production due to a potential energy shortage in Europe, Stifel says, which expects negative news flow around macro to weigh on the valuation of the German chemical company's share in the near term.


Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.