We cut the recommendation to HOLD from BUY and set a new target price of EUR 12.5 (EUR 15). Semperit is presumably one of the few companies that is both beneficiary and victim of the Covid 19 pandemic. However, we think the risk-reward implications are skewed to the downside as the pent-up demand for medical/examination gloves is overcompensated for by the deteriorating trading conditions in the industrial divisions. Above all, we expect a major deterioration of the cash cow division Semperflex. Given the weak underlying return profile of Sempermed (still incorporated in our estimates through FY 22e, though the disposal process should be completed rather in the shorter term, in our view), this is even more true in terms of earnings than for turnover. It goes without saying that at this stage the duration and severity of the crisis cannot yet be quantified but we have attempted to incorporate some sort of base-line implications. In a nutshell, we believe that FY 20e will be another year of a substantial net loss (we project EBIT just to break even) with Sempermeds special business cycle and lower raw material prices mitigating major pressure on the industrial units. For FY 21e we expect these divisional dynamics to reverse but still assume group sales to be approx. 7% below the FY 19 level (and industrial revenues ca. 12% lower).