Lanxess resumed with a Buy at Goldman Sachs

Goldman Sachs resumed coverage of Lanxess with a Buy rating and EUR 29 price target as part of a broader research note on European Chemicals. 2023 was a low point for the stock and from an earnings perspective, and its cyclical recovery could be mild, taking until mid-2025 for more normalised profit levels to be visible for the company, the analyst tells investors in a research note. Goldman Sachs adds however that it sees potential for Lanxess-specific 2023 headwinds to reverse, meaning margins should recover even if the restocking cycle is later or more mild vs. peers.