FRANKFURT (dpa-AFX) - Shares in Wacker Chemie suffered on Friday following a sell recommendation from Citigroup. Initial quotes fell as much as 6 percent below the previous day's level to 97.80 euros, before the discount narrowed to a recent 3.5 percent. On Wednesday, the Bavarian company's stock had reached 105.60 euros, its highest level since summer 2024, following a year-to-date gain of 52 percent.

Citi analyst Sebastian Satz believes that expectations for Wacker's semiconductor business, in particular, are likely set too high. Wacker supplies the industry with high-purity polysilicon and describes it as the 'key raw material of digitalization'. Consequently, the stock rode the wave of the AI rally, which is now beginning to stall.

Compared to shares of other diversified chemical groups, Wacker stock is the most expensive by several metrics, according to Citi expert Satz. Furthermore, his estimates for the second quarter sit below the market consensus. Even Satz's raised price target of 95 euros is already significantly exceeded by the current share price./ag/jha/