Covestro stock edges higher after updated takeover offer from Apollo and Rhône Capital

Covestro stock (ISIN DE0006062144) is trading above the EUR 50 mark as of September 18, 2026, supported by renewed takeover interest from Apollo and Rhône Capital and solid second quarter 2026 figures.

Takeover talks with Apollo and Rhône Capital continue

Covestro, the German specialty chemicals group, confirmed in an investor update dated September 18, 2026 that exploratory talks with financial investors Apollo and Rhône Capital on a potential takeover are ongoing and that the investors have submitted an updated indicative offer valuing the company at around EUR 11.5 billion enterprise value, up from a previous proposal of about EUR 10.8 billion in early 2026.

According to Reuters on September 17, 2026, the latest non-binding proposal from the investor consortium implies a cash offer in the mid EUR 50s per share, which is roughly 15 percent above Covestro's undisturbed share price in late August 2026 and around 8 percent above the last closing price before the update.

Q2 2026 results show improving profitability

For the second quarter of 2026, Covestro reported group revenue of EUR 3.90 billion, an increase of 6.6 percent compared with EUR 3.66 billion in the second quarter of 2025, driven mainly by higher volumes in its polyurethanes and polycarbonates segments.

According to Covestro in its Q2 2026 results released on August 6, 2026, adjusted EBITDA rose by 18.4 percent year on year to EUR 655 million from EUR 553 million in Q2 2025, supported by lower raw material costs and improved product mix.

Net income attributable to shareholders in Q2 2026 climbed to EUR 310 million, up 34.8 percent from EUR 230 million a year earlier, while the EBITDA margin expanded to 16.8 percent from 15.1 percent in Q2 2025, signalling that the restructuring and cost-saving measures announced in 2025 are delivering measurable benefits.

Covestro confirmed its full year 2026 guidance with expected EBITDA in a range of EUR 2.1 billion to EUR 2.5 billion and a free operating cash flow of more than EUR 1.0 billion, compared with EBITDA of EUR 1.8 billion and free operating cash flow of EUR 0.8 billion in fiscal year 2025, although the 2025 figures are a historical reference.

Analyst views and valuation backdrop

Analyst sentiment on Covestro stock has become more positive following the Q2 2026 results and the renewed takeover approach.

As MarketScreener reported on August 7, 2026, Deutsche Bank raised its price target for Covestro stock from EUR 52 to EUR 60 while reiterating a Buy rating, citing the stronger than expected Q2 2026 EBITDA and the potential for a takeover premium.

According to the same overview from MarketScreener, JPMorgan lifted its target from EUR 48 to EUR 55 and kept an Overweight rating as of August 8, 2026, noting that the updated offer from Apollo and Rhône Capital in the mid EUR 50s per share provides a valuation floor for the stock.

The consensus 12 month price target cited in the analyst survey now stands at EUR 54.50 per share as of September 18, 2026, around 7.4 percent above the latest Xetra closing price, which indicates that the market still prices in some probability of a successful transaction but also discounts sector risks such as cyclical demand in construction and automotive end markets.

Key risks around the takeover and the cycle

One key risk for Covestro shareholders is that the takeover talks with Apollo and Rhône Capital may end without a binding offer, in which case the share price could fall back towards levels seen before the initial approach and re-align more closely with fundamentals and the chemicals sector cycle.

As Handelsblatt pointed out in an article dated September 16, 2026, demand in key polyurethanes markets such as construction and furniture remains sensitive to interest rates and housing activity, and a slower than expected macro recovery in Europe could weigh on Covestro's margins again in 2027.

On the other hand, Covestro's growing exposure to sustainable materials and circular solutions, including recycled polycarbonates and bio-based polyurethane components, offers some structural support to volumes and pricing, even if the near-term cycle remains volatile.

Covestro stock price and trading data

Covestro stock is primarily listed on Xetra in Frankfurt. As of the Xetra close on September 17, 2026, the shares traded at EUR 51.20, up 1.8 percent from the prior close of EUR 50.30, with an intraday high of EUR 51.60 and a low of EUR 50.80, per exchange data.

The current price places Covestro stock roughly 10.6 percent below its 52 week high of EUR 57.30 and 26.6 percent above its 52 week low of EUR 40.45, illustrating how the takeover speculation has lifted the shares from the lower end of their recent trading range.

Based on the EUR 51.20 closing price and 193 million shares outstanding, Covestro's equity market capitalization stands at around EUR 9.9 billion as of September 17, 2026, with average daily Xetra trading volume over the past month of about 1.3 million shares.

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