Analyst Henrik Paganetty of Jefferies maintained a Hold rating on SGL Carbon (0MPL – Research Report), with a price target of €4.40.
Henrik Paganetty has given his Hold rating due to a combination of factors influencing SGL Carbon’s performance. The company’s first-quarter results showed a decline in sales and adjusted EBITDA compared to the previous year, primarily due to weak demand in the Semiconductor & LED market segment, which is heavily impacted by electric vehicle clients. This decrease in sales, particularly of higher-margin products, has led to a reduction in the EBITDA margin.
Despite these challenges, SGL Carbon has maintained its guidance for 2025, expecting sales to be slightly below the previous year and adjusted EBITDA to fall within a specific range. The company’s outlook also anticipates a positive free cash flow by the end of the financial year, excluding restructuring costs. These mixed signals, with both challenges and some positive expectations, underpin Paganetty’s decision to rate the stock as Hold, suggesting a cautious approach while acknowledging potential future improvements.
In another report released on April 29, Deutsche Bank also maintained a Hold rating on the stock with a €4.30 price target.