Priced: COMM 2025-SBX $435M SASB CMBS via Deutsche Bank

Priced: COMM 2025-SBX $435M SASB CMBS via Deutsche Bank

Deutsche Bank (ETR:DBKGn) has downgraded Brenntag AG (ETR:BNRGn) (ETR:BNR) (OTC:BNTGY) from a "Buy" to a "Hold" rating, significantly reducing its price target from EUR75.00 to EUR52.00 [1]. The downgrade is a result of the bank's concerns about Brenntag's heightened cyclicality, particularly within its Essentials segment, which is facing increased exposure to current pricing pressures.

Brenntag recently revised its guidance for the current year, reducing it from the lower range of EUR1.1-1.3 billion to EUR950-1,050 million. Additionally, the company's EBITA declined quarter-over-quarter in Q2, indicating ongoing pricing and volume pressures. Deutsche Bank noted that Brenntag's end-market exposure is skewed toward more cyclical sectors, which creates timing challenges despite the company's potential.

The bank has also revised its 2025 EBITA forecast for Brenntag, lowering it to EUR990 million, approximately 7% below consensus estimates. This adjustment reflects the bank's concerns about Brenntag's cyclical nature and the potential impact of current market conditions on its financial performance.

References:
[1] https://za.investing.com/news/analyst-ratings/deutsche-bank-downgrades-brenntag-stock-to-hold-on-cyclicality-concerns-93CH-3790941