Brenntag: An Update, And A New 'Buy' Rating

2025-01-01 10:08:42 ET

Summary

• I upgraded Brenntag to a "Buy" due to strong fundamentals, a sound operating model, and significant upside potential despite recent price declines.
• Brenntag's valuation has improved, trading below 12.6x P/E with a 3.6% yield, making it an attractive investment with a conservative PT of €80/share.
• The company is executing on its Horizon 2 Strategy, optimizing its portfolio, and achieving significant cost savings, despite facing geopolitical and market pressures.
• Brenntag's diverse operations, well-covered dividend, and realistic upside based on earnings growth make it a compelling addition to a basic materials portfolio.

Dear readers/followers,

In my latest article on Brenntag ( BNTGF ), I went ahead and changed my rating on the company. I upgraded Brenntag to a "Buy" rating due to very strong fundamentals, a beyond-sound operating model, and an upside that I considered to be non-trivial at the time....

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