Clariant: SG still a buyer: raises target price.
(CercleFinance.com) - This morning Société Générale (SG) has become more optimistic about the share of the Swiss specialty chemist Clariant.
Analysts mention "strong sustainable standalone growth drivers" and have therefore confirmed their buy rating on the stock, raising their 12-month target price from 25 Swiss francs to 29.5 Swiss francs (+18%).
Indeed, the failed merger with the American group Huntsman Corporation marked recent history of the Swiss group. However, according to SG, which met the group's CFO in Paris, Clariant's business has nevertheless been experiencing "growing momentum, especially in recovering operations".
The note states that SG considers that the quality of Clariant's earnings performance is the highest amongst stocks it monitors in the specialty industries sector. SG expects operating income to increase by an average of 10% between 2017 and 2019. Finally, the presence of activist fund White Tale in the group's capital (over 20% stake), which is currently the group's largest shareholder, and the pressure on management should also boost the share price.
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