Barclays has adjusted its price targets upward for two specialty chemicals distributors, Azelis Group and IMCD, citing supply disruptions from the war in Iran and climbing commodity prices.

According to a sector report from the British bank published Monday, Barclays lifted its target for Azelis from €10.50 to €11.00 while maintaining an Equalweight rating. For IMCD, the target rose from €103 to €106 with an Overweight recommendation intact. IEX reports these changes stem from disrupted distribution channels and rising raw material costs, prompting Barclays to increase profit forecasts by 3% to 5% for both companies.

The analyst views these factors as net positive, despite potential long-term margin compression. Barclays' estimates now exceed consensus by 1% for Azelis and 5% for IMCD.

Azelis Group, listed in Brussels, operates in the industrials sector as a Trading Companies & Distributors player with a market cap around €2.4 billion. Its shares traded at €8.77 recently, above the broader analyst consensus target of €8.55 despite a Buy rating from five analysts.

IMCD, on Amsterdam's exchange, shares a similar profile with a €6 billion market cap. At €89.12, the stock significantly outpaces its €73.50 consensus target under an Outperform rating from four analysts. Both saw declines Monday—Azelis down 0.6% to €9.36 and IMCD off 1.1% to €90.95—contrasting the upgrade.

Commodity price increases linked to geopolitical tensions in Iran could benefit these firms' revenue streams, Barclays argues. However, consensus targets imply caution, with IMCD's average well below current levels, possibly reflecting concerns over valuation or margins.

This Barclays note highlights tailwinds for specialty chemicals distribution amid global supply strains, even as shares pull back.