Jefferies downgraded Lanxess AG (XETRA:LXS) from Hold to Underperform on Tuesday, lowering the price target to EUR16.00 from EUR17.00. The stock currently trades at $20.04.
European chemicals conditions remain weak in early 2025, with soft end markets and intense Asian competition. Utilization rates stay low and upstream pricing under pressure.
The Iran conflict in March shifted dynamics, reducing Asian exports to Europe and boosting pricing power with hikes up to 50%. The stock has risen 53% since its trough but remains 36% down over the past year.
Jefferies warns of potential demand destruction in H2 2026 due to higher energy costs. The firm forecasts FY2026 EBITDA of EUR477 million, 5% below guidance midpoint.
