JPM ups Lanxess as pricing power improves amid APAC supply disruptions
Lanxess rises around 13% after J.P.Morgan upgraded the German chemicals maker to "overweight" from "underweight" and placed the stock on positive catalyst watch ahead of Q1 results on May 7
The broker sees the German chemicals maker best positioned to take advantage of production disruptions in the Asia Pacific region due to the war in Iran
It highlights that Lanxess is potentially the only company in its select key product chains among Western companies, thus easing competitive pressure and drive pricing power
It deems Lanxess' 150 million euros ($174 million) incremental cost savings to largely offset fixed-cost inflation in 2026
Out of 22 analysts that cover Lanxess, six rate the stock "strong buy" or "buy," 11 "hold" and five rate the stock "strong sell" or "sell"
($1 = 0.8622 euros)
