WACKER CHEMIE (=) : Company contact

Research evidence excerpt

WACKER CHEMIE (=) : Company contact

Refinitiv

Investment case, valuation and risks

Wacker Chemie (Neutral, Target Price EUR80)

Investment case

With silicones pricing improving from a low base in China, a looming section 232

outcome which could provide positive earnings momentum to the ailing polysilicon

business and a fresh €300m savings plan over 2026/27, momentum arguably could

shift for Wacker through 2026. Amongst our coverage, Wacker is one of the more

exposed to European resi construction, which is one of very few sub-sectors in which

demand seems to be incrementally better. Wacker has idiosyncratic drivers of a shift in

momentum which are lacking across the rest of cyclical chemicals, which arguably

justify the premium valuation but we struggle to see further upside from here without a

favourable outcome from the 232, which is very uncertain. Hence, we rate the shares

Neutral.

Valuation methodology

Our EUR80 TP for Wacker is set by DCF, using a 6.4% terminal NOPAT margin, an

8.5% WACC and 1.5% terminal growth.

Risks

To the upside:

Sustained recovery in polysilicon pricing, or consolidation in the sector, combined with a

favourable section 232 outcome; stronger than expected margins in Silicones, or margin

improvement in Polymers; stronger than expected European or Chinese construction

markets; big contract wins in the Biosolutions division which improve utilization of

capacity.

To the downside:

Pricing pressure in semi-grade polysilicon, silicone specialties or the Polymers division;

a renewed macroeconomic downturn; further downside to the value of the Siltronic stake.

BNP Paribas Research Wacker Chemie 22 JUNE 2026 page 2

lcecil1@tulane.edu Loren Cecil 06/28/26 05:04:21 PM Tulane University