In a report released today, Henrik Paganetty from Jefferies maintained a Hold rating on SGL Carbon, with a price target of €3.50.
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Henrik Paganetty has given his Hold rating due to a combination of factors surrounding SGL Carbon’s recent performance and future outlook. The company reported satisfactory third-quarter results and maintained its guidance for 2025, despite anticipating a year-over-year decline in sales. The expected sales drop is attributed to weak demand in the semiconductor sector and strategic withdrawal from non-profitable ventures within the Carbon Fibers segment.
Despite these challenges, SGL Carbon’s adjusted EBITDA for the quarter exceeded expectations, thanks to effective restructuring and cost-saving initiatives. The improvement in EBITDA margin reflects these efforts, although the overall sales figures were below estimates. Furthermore, the company’s free cash flow remained stable, aided by stringent cost management and reduced capital expenditures. These mixed results, with positive operational adjustments but ongoing sales pressures, underpin the Hold rating.
Paganetty covers the Services sector, focusing on stocks such as ZEAL Network, CTS Eventim AG & Co. KGaA, and Avolta AG. According to TipRanks, Paganetty has an average return of 3.6% and a 49.04% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €3.00 price target.