SRH AlsterResearch AG Update: Brenntag SE - Increase in FY ’21 guidance – PT up and rating up to BUY

Brenntag SE (Update)

Chemicals

MCap EUR 11,779m

BUY (HOLD), PT EUR 88.00 (from 80.00, +15% potential)
Research update

Based on continued strong demand way into Q2/21 and in light of continued strong demand for the rest of the year, Brenntag increased its FY guidance for operating EBITDA by some 7% vs. its previous guidance. We view the upgrade in guidance as a further positive signal and evidence of the resilience of Brenntag’s business model and its superior competitive quality. Also, Brenntag is likely to be a major beneficiary in light of an inflationary environment and genuinely rising raw material prices. We therefore increase our estimates and upgrade the stock from HOLD to BUY, based on a new PT of EUR 88.00 (80.00).

 

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