Berenberg Cuts Evonik Industries to Sell on Product Pricing Challenges

01:17 AM EST, 01/08/2026 (MT Newswires) -- Berenberg said Wednesday it downgraded Evonik Industries (EVK.F), as it is unsure that the German chemicals company can meet earnings expectations from 2026 due to product pricing challenges amid growing competition. The rating was lowered to sell from hold, while price target was down to 11.6 euros from 14.6 euros. The research firm also reduced its EPS estimates by 5% for 2026 and 20% for 2027, citing lower product pricing across the board and reduced assumed methionine prices from 2027. Berenberg added that its 2026 and 2027 EBITDA forecasts are 5% and 10% below Bloomberg consensus, respectively. "We suspect Evonik will respond to pressure on the prices of methionine and other products with incremental change: trimming its dividend and continuing its long, hitherto fruitless search for buyers of its butadiene and infrastructure assets," analysts said. "We believe the company should consider more radical measures including removing over half of the dividend, breaking up disparate units that have little connection with each other, and buying back stock."