FRANKFURT (dpa-AFX) - Goldman Sachs' turnaround in its rating of Lanxess initially set the specialty chemicals company's shares back by 3.5 percent on Friday. Recently, however, the minus melted away to about half and they were back at 22.50 euros.
Goldman expert Georgina Fraser had lowered her Lanxess price target from EUR 31.00 to EUR 19.50 and changed her buy recommendation to a sell recommendation. She adjusted her estimates for the European chemical sector to the gloomy economic situation. It sees the shares of Lanxess and Croda in a "relatively precarious situation" with regard to an economic downturn. Croda shares also lost ground in London, even though Fraser "only" downgraded them to "neutral".
The expert cites high dependence on the USA, comparatively high cyclical sales and low pricing power as problems. In the case of Lanxess, the fragile balance sheet adds to this. Based on her lowered estimates, the ratio of net debt to expected operating profit (EBITDA) is 4.3, according to Fraser.
Lanxess shares plummeted to their lowest level since October 2023 at EUR 20.42 at the beginning of the week in the market crash in the wake of the trade war instigated by the US with its flood of tariffs./ag/mis
