Update shared on10 Oct 2025
Fair value Decreased 3.37%Narrative Update on Clariant
Clariant's analyst price target has been revised downward from CHF 10.95 to CHF 10.58. Analysts cite a combination of cautious revenue growth assumptions and a recent reduction in price targets by major banks.
Analyst Commentary
Bullish Takeaways
- Bullish analysts note that hold ratings are being maintained. This suggests they do not foresee significant downside risk in the near term.
- Recent price target adjustments remain well above current trading levels and indicate some underlying confidence in the company's long-term prospects.
- Clariant's established market presence and stable fundamentals provide a foundation for potential recovery if revenue growth improves.
Bearish Takeaways
- Bearish analysts point out that price targets continue to be revised downward. This reflects growing caution regarding Clariant's ability to drive revenue growth.
- Valuation concerns persist as expectations for near-term performance are moderated in light of market uncertainties.
- Execution risk is highlighted, with questions about how swiftly Clariant can implement strategic initiatives to support profitability.
- Some believe competitive pressures and a challenging macro environment could constrain upside potential in the coming quarters.
What's in the News
- Clariant has received two major claims for damages from BP Europe SE and ExxonMobil Petroleum & Chemical B.V., totaling approximately EUR 1.1 billion and EUR 860 million. These claims are related to alleged infringement of competition law in the ethylene purchasing market. Clariant rejects the claims and plans to defend itself, stating the conduct had no impact on the market (Key Developments).
- Clariant AG was recently dropped from the FTSE All-World Index (USD) (Key Developments).
- The company revised its earnings guidance for 2025, narrowing its expected sales growth to 1% to 3% in local currency. This adjustment is due to weak industrial production and uncertainty in end markets (Key Developments).
Valuation Changes
- Consensus Analyst Price Target, represented as fair value, has fallen slightly from CHF 10.95 to CHF 10.58.
- The discount rate has risen marginally from 5.99% to 6.06%.
- Revenue growth assumptions have decreased modestly from 2.86% to 2.81%.
- Net profit margin estimates have edged up slightly, moving from 8.09% to 8.10%.
- Future P/E ratio expectations have decreased from 11.91x to 11.60x.
Disclaimer
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