July 5 (Bloomberg) -- Lanxess AG, the German maker of synthetic rubber for Pirelli & C SpA tires, rose to the highest level in five weeks after HSBC Holdings Plc raised its recommendation on the shares to overweight from neutral.
The stock advanced as much as 2.5 percent to 54.84 euros, the highest intraday level since May 30, and was up 1.4 percent at 54.25 euros as of 1:41 p.m. Laxness has risen for five days, its longest streak of gains since January. The stock has climbed 9.1 percent this week, compared with a 2.8 percent advance for the STOXX 600 Chemicals Index.
Jesko Mayer-Wegelin, an analyst at HSBC, set a target price of 64 euros a share. The company will benefit from “increasing divergence” between standard and high-performance tire demand, according to HSBC.
Of 33 analysts surveyed by Bloomberg, 26 recommend buying Lanxess shares and seven recommend holding the stock.
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