The chemical distributor Brenntag has lowered its profit forecast for the financial year 2025. This follows announcements by Covestro and BASF, which have also published more skeptical future outlooks. The reason for the reduction is a combination of weaker performance in the first quarter, macroeconomic risks, and currency headwinds.
Forecast Adjustments and Analyst Ratings
Specifically, analysts have made various downward corrections to the EBITA forecasts. Berenberg reduced its expectations from 1.14 billion euros to 1.05 billion euros. Deutsche Bank lowered its price target for Brenntag shares from 86.30 euros to 80 euros and adjusted the EBITA forecast downwards by about 8 percent to around 1.09 billion euros. Despite these adjustments, Deutsche Bank maintains its buy recommendation. Brenntag itself continues to hold an EBITA range of 1.1 to 1.3 billion euros, but expects to reach the lower end of this range.
A Signal for the Chemical Sector
These profit warnings are particularly of interest to private investors, as they represent a potential signal of challenges in the chemical sector. Several warnings from large chemical companies in one day could indicate that the market is heading towards a difficult environment. The impacts could be reflected in stock prices and dividend policies and may hint at economic or geopolitical pressures.
In summary, Brenntag appears cautious about medium-term developments in light of external uncertainties and operational challenges. Investors should take these signals seriously and may need to reconsider their investment decisions.