UBS cuts Brenntag to 'sell' on deteriorating market conditions, weak earnings

Brenntag SE

10/10/2025 10:47

** UBS cuts Brenntag BNRGn.DE to "sell" from "neutral", citing deteriorating market conditions and weak earnings momentum for the chemicals distributor

** "With increasing evidence of weak end-market demand, and chemical industry overcapacity, we see risks that the chemical distribution industry will be facing a deteriorating volume and GP (gross profit)/unit environment into H1 2026," the brokerage says

** It lowers Brenntag's profit forecasts by 7% on average, putting them 4–11% below consensus for 2025-2027

** Organic gross profit is expected to decline 5–6% year-over-year in H2 2025, UBS adds

** Out of 20 analysts, seven rate the stock "strong buy" or "buy", ten "hold" and three​ "strong sell" or "sell" - LSEG data

(Reporting by Anastasiia Kozlova)

((Anastasiia.Kozlova@thomsonreuters.com))