Morgan Stanley analyst Lisa De Neve has maintained their neutral stance on CLZNF stock, giving a Hold rating on June 16.
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Lisa De Neve’s rating is based on Clariant AG’s current trading stability and future growth prospects, despite some challenges. The company has not experienced the anticipated drop-off in trading, and it plans to mitigate the direct impact of tariffs by passing costs onto customers. However, the indirect effects of tariffs on consumer sentiment and demand remain a concern. Clariant is optimistic about achieving its growth and EBITDA margin targets by FY25, but it faces significant foreign exchange headwinds that could impact its top line.
Divisionally, Clariant’s performance is mixed. While Care Chemicals is expected to decline due to seasonal factors and lower demand in certain areas, Crop Chemicals are rebounding with positive volume and pricing trends. The Catalysts division is experiencing weak top-line growth, but strong margins due to a favorable sales mix. Additionally, the Additive segment is benefiting from a strong replacement cycle and new market access in China. Despite these positive aspects, the ongoing ethylene litigation poses a potential financial risk, as the outcome and timeline remain uncertain.
In another report released on June 16, Jefferies also downgraded the stock to a Hold with a CHF9.50 price target.