Covestro AG

Covestro AG is a global supplier of high-tech polymer materials and application solutions developed for these materials. Co. produces precursors for polyurethane foams and the high-performance plastic polycarbonate in addition to raw materials for coatings, adhesives and sealants as well as specialty products, including high-quality films. Other precursors such as chlorine and by-products like styrene are part of Co.'s range of products.
  • Ticker606214
  • ISINDE0006062144
  • SectorChemicals
  • CountryGermany

Analysts

Increased risk weighs on COVESTRO AG, penalising its rating down to Negative

The independent financial analyst theScreener just lowered the general evaluation of COVESTRO AG (DE), active in the Specialty Chemicals industry. As regards its fundamental valuation, the title still shows 0 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Negative. As of the analysis date November 20, 2018, the closing price was EUR 47.64 and its target price was estimated at EUR 45.26.

Rob Hales

Morningstar | 1COV Updated Star Rating from 20 Nov 2018

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 50% from the peak in February, we don’t see an opportunity yet. Shares are now trading in line with o...

Rob Hales

Morningstar | Covestro Shares Fall 14% on Profit Warning; Shares Fairly Valued

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 50% from the peak in February, we don’t see an opportunity yet. Shares are now trading in line with o...

Rob Hales

Covestro Shares Fall 14% on Profit Warning; Shares Fairly Valued

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 5...

Rob Hales

Morningstar | Covestro Has More Room To Fall

Covestro derives two thirds of its revenue from polyurethanes and polycarbonates. Polyurethanes are primarily used to make rigid and flexible foams for furniture, mattresses, car seats, and insulation for buildings and refrigerators. Polycarbonates are mid-grade engineering plastics that are used in electronics, automotive, and architectural glazing. As these products are largely commodified, competition is price-based. Covestro holds leading positions in market share and on the cost curve in certain products and regions. However, the cost curves can be relatively flat due to consolidated mark...

Covestro AG: Update to Discussion of Key Credit Factors

CORPORATES CREDIT OPINION 23 June 2017 Update RATINGS Covestro AG Domicile Germany Long Term Rating Baa2 Type LT Issuer Rating - Dom Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Francois Lauras 44-20-7772-5397 VP-Sr Credit Officer francois.lauras@moodys.com A

Rob Hales

Morningstar | 1COV Updated Star Rating from 20 Nov 2018

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 50% from the peak in February, we don’t see an opportunity yet. Shares are now trading in line with o...

Rob Hales

Morningstar | Covestro Shares Fall 14% on Profit Warning; Shares Fairly Valued

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 50% from the peak in February, we don’t see an opportunity yet. Shares are now trading in line with o...

Rob Hales

Covestro Shares Fall 14% on Profit Warning; Shares Fairly Valued

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 5...

Rob Hales

Morningstar | Covestro Has More Room To Fall

Covestro derives two thirds of its revenue from polyurethanes and polycarbonates. Polyurethanes are primarily used to make rigid and flexible foams for furniture, mattresses, car seats, and insulation for buildings and refrigerators. Polycarbonates are mid-grade engineering plastics that are used in electronics, automotive, and architectural glazing. As these products are largely commodified, competition is price-based. Covestro holds leading positions in market share and on the cost curve in certain products and regions. However, the cost curves can be relatively flat due to consolidated mark...

Rob Hales

Covestro Has More Room To Fall

No-moat Covestro reported third-quarter EBITDA of EUR 859 million, flat over the prior-year period. This officially ends a 14-quarter streak of uninterrupted growth. Shares are reacting mildly today; however, the stock is down 25% in the last month and around 40% from the peak in February. We have been calling out the stock as significantly overvalued for some time as we expected temporary supply disruptions in the polyurethanes market to fade. Consequently, the significant share decline this ye...

1 director bought

A director at Covestro Ag bought 1,000 shares at 53.596EUR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Increased risk weighs on COVESTRO AG, penalising its rating down to Negative

The independent financial analyst theScreener just lowered the general evaluation of COVESTRO AG (DE), active in the Specialty Chemicals industry. As regards its fundamental valuation, the title still shows 0 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Negative. As of the analysis date November 20, 2018, the closing price was EUR 47.64 and its target price was estimated at EUR 45.26.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Proxy Report - 13/04/2018

General: Covestro AG is among the world's largest polymer producers. The Company's business activities are focused on the manufacturing of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health, and the chemical industry itself. Covestro has about 30 production sites around the globe and employs approximately 16,200 people. Covestro AG was ...

Expert Corporate Governance Service (ECGS)

Etude de l'AG du 03/05/2017

General: Covestro is among the world's largest polymer producers. The Company's business activities are focused on the manufacturing of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. Covestro has 30 production sites around the globe and as of 31 December 2016, employed approximately 15,600 people.Covestro AG was founded as a subsidiary of Bayer AG on 20 August 2015 as a consequence of Bayer AG's deci...

Jérôme VINERIER

Short term view - COVESTRO AG : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €48.24. The background trend would be questioned should prices rise above €64.20.

Jérôme VINERIER

Analyse court terme - COVESTRO AG : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 48,24 €. La tendance de fond serait remise en cause en cas de franchissement de 64,20 €.

Jérôme VINERIER

Analyse court terme - COVESTRO AG : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Le mouvement se poursuit. Le prochain objectif est à 48,24 €, puis 43,68 €. Le franchissement de 64,20 € remettrait en cause la suite de la baisse.

Jérôme VINERIER

Short term view - COVESTRO AG : The background trend is clearly bearish.

The background trend is clearly bearish. The movement goes on. The next target is at €48.24, then €43.68. Passing €64.20 would question the continuation of the fall.

Jérôme VINERIER

Medium term view - COVESTRO AG : The trend is uncertain.

The trend is uncertain. Prices are falling and they may accelerate to the downside. A new bearish trend is attempting to emerge.

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