Lanxess: Berenberg starts coverage with 'sell' rating
(CercleFinance.com) - Berenberg has begun its coverage of Germany's Lanxess with a "sell" rating, citing a potential slowdown in the auto sector, with the chemical company's stock also trading at a premium.
In a note to clients, the German broker warns against "substantial risks."
"A slowdown in global auto production will limit volume growth in engineering plastics, while near-term labour cost inflation represents a headwind not accounted for in consensus," it wrote in the report.
Berenberg analysts have a target price of 57.5 euros for the Lanxess share.
After these comments, the Frankfurt-listed shares were trading down 2.6 percent at 65 euros on Friday morning.
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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.
In a note to clients, the German broker warns against "substantial risks."
"A slowdown in global auto production will limit volume growth in engineering plastics, while near-term labour cost inflation represents a headwind not accounted for in consensus," it wrote in the report.
Berenberg analysts have a target price of 57.5 euros for the Lanxess share.
After these comments, the Frankfurt-listed shares were trading down 2.6 percent at 65 euros on Friday morning.
Copyright (c) 2018 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.