Wacker Chemie initiated with a Buy at Jefferies

Jefferies initiated coverage of Wacker Chemie with a Buy rating and EUR 146 price target. Wacker is trading at a 16% discount to group history and “valuing polysilicon at 0,” says the analyst, who acknowledges polysilicon uncertainty, but adds that “many outcomes suggest likely support.” Enforcement of polysilicon trading sanctions limiting solar value chain’s ability to source China product would support a potential incremental EUR 24 per share of upside to its price target, the firm added.