BUZZ-JPM puts Wacker Chemie on negative catalyst watch as polysilicon prices worry

Reuters · 07/01 09:58
BUZZ-JPM puts Wacker Chemie on catalyst watch as polysilicon prices worry

** J.P.Morgan places German chemical firm Wacker Chemie WCHG.DE on its Negative Catalyst Watch, expecting material cuts to estimates post Q2 results due to the recent collapse in polysilicon prices

** JPM expects polysilicon prices to recover the coming quarters, however probably above Wacker Chemie cash cost levels due to the very significant oversupply

** The broker Wacker's customers for polysilicon are mainly Chinese companies with production assets in South East Asia, with some customers cutting production due to potential U.S. anti-dumping tariffs and current significant industry oversupply

** "Thus, the risk is only that the further progress for WCH in securing contracts on ex. China price stalls but also that some of the existing volumes where it gets ex. China prices might weaken in the -term"

** Out of 18 analysts that cover Wacker Chemie AG, 11 rate the stock "strong buy" or "buy," ​seven rate "hold" and analysts rate the stock "strong sell" or "sell"


(Reporting by Tristan Veyet)

((Tristan.chabba@thomsonreuters.com))