Wacker Chemie: UBS upgrades sell rating.
(CercleFinance.com) - UBS has upgraded its “sell” rating on the German specialist of silicon and silica products Wacker Chemie to "neutral".
Alongside this upgrade, it has raised its target price for the stock from 85 euros to 110 euros (+29.4%), which more or less represents the share's current price.
Analysts recognise that concerns they had over the Polysilicon division, which represents 29% of the group's expected 2017 EBITDA, have not been materialised in Wacker Chemie's recently published interim results.
Indeed, the group's products are in great demand in China in the manufacture of solar panels, which the country is adopting faster than UBS expected. This trend is expected to continue in China, thanks to equipment programs that are underway. In addition, the Wacker Polysilicon division is in the middle of a cost reduction program: as a result, of this UBS has decided to raise its forecasts.
Copyright (c) 2017 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.
Alongside this upgrade, it has raised its target price for the stock from 85 euros to 110 euros (+29.4%), which more or less represents the share's current price.
Analysts recognise that concerns they had over the Polysilicon division, which represents 29% of the group's expected 2017 EBITDA, have not been materialised in Wacker Chemie's recently published interim results.
Indeed, the group's products are in great demand in China in the manufacture of solar panels, which the country is adopting faster than UBS expected. This trend is expected to continue in China, thanks to equipment programs that are underway. In addition, the Wacker Polysilicon division is in the middle of a cost reduction program: as a result, of this UBS has decided to raise its forecasts.
Copyright (c) 2017 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.