Evonik: SG upgrades to buy; stock merits more.

(CercleFinance.com) - Société Générale (SG) has upgraded its hold rating on the German specialist chemicals group Evonik Industries to buy.
Alongside this upgrade, the broker has raised its target price from 31.5 euros to 36 euros.

According to SG analysts, the "positive change (of the group's situation) is not reflected in share price performance." For the broker, the downward cycle of methionine, a key product whose price has fallen by 40% from its peak to a seven-year low (about 2.5 euros per kilo), has now come to an end.

In addition, Evonik has a business portfolio that is considered as fairly extensive and rather defensive. In particular, it will benefit from the acquisition of Metex, made last year, which exposes Evonik to bio-methionine.


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