Brenntag downgraded to Hold from Buy at Stifel

Stifel downgraded Brenntag to Hold from Buy with a price target of EUR 76, up from EUR 73. The Cefic chemical sentiment indicator turned negative again in Q2 and the market should be prepared for more profit warnings in the European chemicals sector, the analyst tells investors in a research note. However, given “depressed” valuations, there might be limited downside for share prices from here, says Stifel. It prefers companies with predictable earnings growth, as a cyclical recovery is postponed. Diversified and upstream chemical companies “are at the end of our pecking order,” writes the firm, who made several rating changes in the space.