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BUZZ-Baader Helvea cuts Wacker Chemie to 'add' on solar recovery uncertainty

ReutersFeb 19, 2025 10:15 AM

Baader Helvea downgrades Wacker Chemie WCHG.DE to "add" from "buy", citing uncertainty in the solar business arising from changes in the political and market environment

The brokerage says U.S. solar tariff investigation is going to take longer than expected after President Donald Trump imposed new tariffs

Also it sees decline in pricing power as competitor Celanese CE.N increases polymer supply and Asian upstream capacity rises

It expects a 9.2% fall in FY sales in 2025 and lowers adjusted EBIT projections to 558.9 million euros

The brokerage, however, sees long-term upside from Ukraine peace talks, Germany's conservative Christian Democratic Union's (CDU) electricty cost reduction plans and upcoming EU "Clean Industrial Deal"

Out of 17 analysts that cover Wacker Chemie, 12 rate the stock "strong buy" or "buy" and ​five "hold"

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