Solvay: Crédit Suisse upgrades stock
(CercleFinance.com) - Crédit Suisse has upgraded its rating on the Solvay share from "neutral" to "outperform," having raised its target price from 76 euros to 90 euros, after increasing its earnings estimates for the Belgian chemical company by an average of 5% over its projection period.
"We believe Solvay represents one of the cheapest exposures in the European Chemicals," the broker says, while acknowledging that "its end markets suggest a slower-than-average short-term top-line recovery (relative to the broader sector".
However, Credit Suisse points to above-average operating leverage, a significant valuation support for the share and a "portfolio optionality provides the potential for accelerated financial deleveraging".
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