Analyst Henrik Paganetty of Jefferies maintained a Hold rating on SGL Carbon, retaining the price target of €4.00.
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Henrik Paganetty has given his Hold rating due to a combination of factors impacting SGL Carbon’s financial outlook. The company’s preliminary figures for the first half of 2025 revealed a significant decline in sales, primarily driven by reduced demand from the semiconductor industry and the strategic restructuring of the Carbon Fibers business unit. This restructuring, while aimed at improving profitability by discontinuing loss-making activities, has not fully offset the loss of higher-margin earnings from the semiconductor segment.
Despite these challenges, SGL Carbon has maintained its adjusted EBITDA guidance, suggesting some level of confidence in achieving profitability through cost-saving measures. However, the revised sales guidance, now predicting a more substantial year-on-year decline than previously anticipated, reflects ongoing market uncertainties and operational adjustments. These mixed signals contribute to the Hold rating, indicating that while there are potential upsides, the risks and uncertainties warrant a cautious approach for investors.
According to TipRanks, Paganetty is a 3-star analyst with an average return of 4.1% and a 50.33% success rate.