Investing.com - Goldman Sachs upgraded Clariant AG (SIX:CLN) (OTC:CLZNY) to Neutral from Sell on Monday and raised its price target to CHF8.50 from CHF7.50.
The firm said the stock shows relatively more exposure to late-cycle dynamics than diversified peers and benefits from demonstrated pricing power in Care Chemicals. Goldman Sachs sees 16% upside to the new price target but noted limited catalysts against a backdrop of financial metrics and ongoing litigation uncertainty.
The upgrade comes as Clariant, with a market capitalization of approximately $3 billion, transitions toward profitability. According to InvestingPro analysis, analysts predict the company will be profitable this year with earnings forecast at $0.86 per share for fiscal 2026, a significant turnaround from last year’s losses. The platform currently tracks over 10 additional ProTips for Clariant, offering deeper insights into the company’s financial positioning.
The firm said Clariant is better positioned than peers such as Lanxess and Evonik in terms of cyclical exposure given the cyclical slowdown now underway. Clariant expects raw materials up mid-single-digit to high-single-digit for fiscal year 2026, energy up mid-single-digit to high-single-digit, and logistics up double-digit.
Goldman Sachs forecasts 9% pricing in its group estimates for the second and third quarters of 2026 and 5% for the full year, compared with negative 1.5% in the first quarter of 2026. The firm expects broadly stable margins on a year-over-year basis.
The firm highlighted the premium positioning of the Lucas Meyer franchise, part of the Home & Personal Care business that represents 20% of group sales, as a key exposure. Clariant saw limited pre-buying in Care Chemicals in the first quarter of 2026, and the company is not energy intense at 4.5% of sales and is not reliant on natural gas for feedstock.
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