Evonik: Decent Rate Of Return, Upside Confirmed

2025-04-01 10:54:35 ET

Summary

• Evonik Industries has shown significant growth, with a 25% EBITDA increase and a 42% FCF rise, making it a strong investment.
• The company's reorganization and focus on renewables position it well for future growth, despite current macroeconomic volatility.
• My price target for Evonik is €24.5/share, with a "Buy" rating due to its undervaluation and potential for long-term gains.
• Diversification, dividends, and patience are key strategies to mitigate market volatility and capitalize on Evonik's upside potential.

Dear readers/followers,

In this article, I'll be providing you with an update on Evonik Industries AG ( EVKIY , EVKIF , FWB: EVK). The company is a chemical/basic materials company, similar and in the same sector as BASF SE ( BASFY ) and other companies I also invest quite a bit in. I've held Evonik for quite a while, but added to the business back in November, in conjunction with my previous article. You can find that article here.

The company has done well since my last article, but not well in the overall time of investing that I've held it. It has not yet materialized its expected upside. My main reason for updating here is to look whether the company could, or may, see upside and at what point that may materialize for the long term....

Read the full article on Seeking Alpha

For further details see: