Solvay: Credit Suisse adjusts target price
(CercleFinance.com) - While maintaining its "neutral" rating on the Solvay share, Credit Suisse has cut its target price from 78 euros to 76 euros, in the wake of an 8% reduction in EBITDA estimates after the Belgian chemical company's trading update for the second quarter.
"The greatest challenge for the Solvay investment case surrounds its likely delayed exposure to end market recovery and the subsequent potential drag on free cash generation," analysts say.
"Whilst it has ND/EBITDA >3x, this suggests the path to deleveraging to sector average levels is a longer-term one only," they continue.
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