Kepler ups Fuchs on 'slight upside' after share price drop

** Kepler Cheuvreux upgrades Fuchs FPE to "hold" from "reduce" seeing "some slight upside" after the German lubricant supplier's shares fell 10% on Wednesday following a profit warning ahead of Q2 results

** Fuchs cut its 2025 EBIT outlook to around 430 million euros, which Kepler says is 5% below consensus

** Even after the cut, the broker says it is sceptical of the company's new guidance, which assumes a normalisation in H2 despite the prevailing poor macro

** "To become more constructive on the stock we would need either an improvement in the economy or a further drop in the share price," it adds