BUZZ-Baader Helvea cuts Wacker Chemie to 'add' on solar recovery uncertainty

Reuters
02-19
BUZZ-Baader Helvea cuts Wacker Chemie to 'add' on solar recovery uncertainty

** Baader Helvea downgrades Wacker Chemie WCHG.DE to "add" from "buy", citing uncertainty in the solar business arising from changes in the political and market environment

** The brokerage says U.S. solar tariff investigation is going to take longer than expected after President Donald Trump imposed new tariffs

** Also it sees decline in pricing power as competitor Celanese CE.N increases polymer supply and Asian upstream capacity rises

** It expects a 9.2% fall in FY sales in 2025 and lowers adjusted EBIT projections to 558.9 million euros

** The brokerage, however, sees long-term upside from Ukraine peace talks, Germany's conservative Christian Democratic Union's (CDU) electricty cost reduction plans and upcoming EU "Clean Industrial Deal"

** Out of 17 analysts that cover Wacker Chemie, 12 rate the stock "strong buy" or "buy" and ​five "hold"

(Reporting by Simon Ferdinand Eibach)

((simonferdinand.eibach@thomsonreuters.com))

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