Covestro: Barclays maintains 'overweight' rating, raises TP

(CercleFinance.com) - Barclays reinstates its "overweight" rating on the Covestro share, its preferred cyclical share amongst the European chemicals sector, having increased its corresponding target price from 53 euros to 64 euros, in the wake of a 16% increase in its 2021e EBITDA, to 5% above the consensus.


"Higher prices for polycarbonates (PCS) were a key reason for the recent increase in guidance", the broker says. for which "Our analysis suggests that margins here have structurally increased and that the recent cyclical tailwind might persist".


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