Berenberg hikes Evonik on BASF takeover interest

By Reuters News

** Berenberg upgrades German specialty chemicals group Evonik EVKn.DE to "hold" from "sell", citing likely support for the shares from BASF's BASFn.DE takeover interest

** Broker ups PT to €20 from €15.50

** It says its previous "sell" rating was based on expectation of lower earnings from methionine commoditisation pressure, but that Asian feedstock disruptions linked to the Iran conflict have temporarily helped

** Berenberg says BASF's reported rebuffed €22.15/shr bid "may not be the end of the story", and sees scope for BASF to return later with €24-25/shr

** "BASF's interest in Evonik as a takeover target is likely to provide a floor to shares," it says, while potential EU sector support through wider antidumping probes and methionine's inclusion on a critical chemicals list may also help

** Out of 15 analysts that cover Evonik Industries AG, 4 rate the stock "strong buy" or "buy", ​8 rate "hold" and 3​ rate the stock "strong sell" or "sell" - LSEG data

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