Deutsche Bank lowers price target for Brenntag: buy or sell now?

Deutsche Bank lowers price target for Brenntag: buy or sell now?

On July 3, 2025, Deutsche Bank AG published an updated valuation of Brenntag SE shares by analyst Tristan Lamotte. In the investigation, the price target for the share was reduced from 80 to 75 euros, while the rating remains at “Buy”. The decision reflects the challenges facing the chemicals trader as operating profit (Ebita) is expected to fall by 12 percent due to exchange rates and tariff uncertainties.

At the time of publication, Brenntag SE shares were trading at 57.80 euros in XETRA trading at 10:04 a.m., an increase of 0.6 percent. Interestingly, the share is up 3.5 percent over the year. Trading recorded 92,431 shares traded up to this point. The balance sheet for the second quarter of 2025 is expected on August 13, 2025, which allows market players to prepare for possible further information.

Analysis of market conditions

In addition to Deutsche Bank's assessments, the research team at Warburg Research, led by analyst Christian Cohrs, conducted a comprehensive analysis of Brenntag SE shares. This study highlights that the stock has risen 8.1 percent since the beginning of 2025, despite a weak first quarter and a subdued economic environment. Despite these challenges, the rating remains at “Buy”. However, the price target was lowered from 75 to 69 euros.

The analysis emphasizes that a meeting with the CEO and the new CFO confirmed the positive assessment of the company. Warburg Research sees long-term potential for Brenntag SE, although there are short-term risks. The company's market capitalization is currently around 8.74 billion euros and the price-earnings ratio (P/E) is 15.62, indicating a moderate valuation.

Opportunities and risks

The factors contributing to the positive rating are robust margins achieved through cost reductions and growth in specialty chemicals. However, the analysis also identifies risks that affect Brenntag, including vulnerability to exchange rate fluctuations, particularly between the euro and the US dollar, and variable free cash flows. The dividend yield of Brenntag SE shares is currently 3.63%, which could be of interest to investors.

Despite the challenges in a difficult market environment, the Brenntag SE share shows an upside potential of around 27% with an average price target of around 73 euros. These insights provide important insights into the company's strategic direction and long-term prospects as the market continues to adapt to changing conditions.

The information and analysis from finance.net and hauptcheck.de illustrate the complex situation of Brenntag SE and the different factors that influence the share valuation. The company remains in the focus of investors, who will continue to closely monitor developments.