Covestro: UBS reduces target price

(CercleFinance.com) - UBS maintains its "hold" rating on Covestro shares, while significantly cutting its target price for them from 53 euros to 34 euros in the wake of a significant reduction in its projections for 2023: at 1.
3 billion euros, its EBITDA forecast is 26% below the consensus.

For 2022, the broker expects EBITDA to be around the middle of management's target range (1.7 to 2.2 billion euros): expecting it to be at the high end of the target range for Q3 (300-400 million euros), although anticipates a significant sequential decline in Q4.

"Our estimates do not include a production cut due to a potential energy shortage in Europe," Stifel warns, which expects "negative newsflow around macro to continue to weigh on valuation near term" of the German chemical company.


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