On Thursday, Deutsche Bank raised its price target on shares of Lanxess AG (ETR:LXSG), listed on XETRA as LXS:GR and over-the-counter as LNXSF, from €27.00 to €28.00 while maintaining a Buy rating on the stock. The adjustment came after the analyst updated their financial model following the company's second-quarter pre-release.
The revised model reflects an increased 2024 EBITDA forecast by 9% to €612 million, positioning it at the upper end of the company's reiterated guidance range. The updated figures incorporate a greater impact from cost savings and the absence of inventory reduction, which were previously estimated at €560 million and are above the non-updated consensus of €569 million.
Lanxess AG had previously indicated a year-over-year impact of €40 million from cost savings and an additional €100 million due to the lack of an inventory reduction. Following the pre-release, the firm has confirmed its 2024 outlook for adjusted EBITDA growth of 10% to 20% year-over-year, suggesting an EBITDA range between €563 million and €614 million.
Additionally, the management of Lanxess AG has provided guidance for the third quarter of 2024's EBITDA to be "close or up to the level of the second quarter," which reported an EBITDA of €181 million. Deutsche Bank's estimate for the third quarter stands at €178 million, an increase from their previous forecast of €168 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.