Wacker Chemie: SG prefers to remain cautious.
(CercleFinance.com) - Admittedly, Societe Generale (SG) analysts believe that the fundamentals of the German silicon and silicium specialist Wacker Chemie have recently improved.
However, this calls for confirmation. Meanwhile, SG maintains its "hold" rating on the stock - even though it has raised its 12-month target price from 110 euros to 116 euros.
"The recent deconsolidation of Siltronic results in an improved product mix," SG believes, since Wacker Chemie has significantly reduced its stake in this semiconductor manufacturer's capital last spring.
Moreover, thanks to cost reductions and the demand for polysilicones, Wacker Chemie's earnings are upbeat. Although management has raised its FY forecasts, targeted levels (EBITDA of 900-925 million euros) are considered "conservative" by analysts.
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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.
However, this calls for confirmation. Meanwhile, SG maintains its "hold" rating on the stock - even though it has raised its 12-month target price from 110 euros to 116 euros.
"The recent deconsolidation of Siltronic results in an improved product mix," SG believes, since Wacker Chemie has significantly reduced its stake in this semiconductor manufacturer's capital last spring.
Moreover, thanks to cost reductions and the demand for polysilicones, Wacker Chemie's earnings are upbeat. Although management has raised its FY forecasts, targeted levels (EBITDA of 900-925 million euros) are considered "conservative" by analysts.
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.