Deutsche Bank downgrades LANXESS on fragile price rise hopes

02 December 2013 17:13  [Source: ICIS news]

LONDON (ICIS)--Deutsche Bank has downgraded its rating on the stock of specialty chemicals producer LANXESS from 'buy' to 'hold' citing the struggle the company will face to achieve planned price rises, the bank said on Monday.

It was doubtful that in current markets Germany-based LANXESS would secure price rises substantial enough to raise profitability, Deutsche Bank analyst Tim Jones said.

At the beginning of November, Fitch Ratings said synthetic rubber manufacturer LANXESS was one of the few major European companies most vulnerable to either slowing growth or rapid currency devaluation in emerging markets and noted that there is little visibility as to when demand and prices might recover in the Asian tyre sector.

By: Will Conroy
+44 20 8652 3214

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