FRANKFURT (dpa-AFX) - The release of detailed first-quarter performance data has bolstered the recent optimism among Wacker Chemie shareholders. Shares in the specialty chemicals group rose 2.7 percent to 98.20 euros by midday Wednesday, outperforming a moderately higher MDax index.
While the stock briefly climbed higher, it failed to break past the 21-month peak of just under 100 euros reached about a week ago. Nevertheless, today's gains bring the total year-to-date increase since the start of 2024 to nearly 42 percent.
Following the disclosure of revenue and operating profit (EBITDA) figures two weeks ago, alongside the confirmation of full-year EBITDA guidance, investor focus shifted to divisional performance. Analysts noted several positive surprises in this regard. Anil Shenoy of Barclays highlighted that the Silicones and Polymers divisions significantly exceeded consensus estimates.
Citigroup analyst Sebastian Satz also singled out the Silicones segment, pointing to a 'stabilization' in operating profitability and the highest margin recorded since 2022. Consequently, management raised guidance for both divisions, with price hikes expected to support second-quarter results, he noted. Furthermore, the robust first-quarter performance serves as evidence that the cost-saving program is yielding results.
Regarding the stock, which Satz rates as 'Neutral', he observed that the scale of the recovery remains substantial. He attributed this primarily to two factors: the Section 232 investigation into polysilicon - a trade policy probe aimed at reviewing and potentially limiting polysilicon imports into the U.S. on national security grounds - and Tesla's announced massive expansion of solar production capacity in the United States./ck/mis/jha/
