Solvay: Credit Suisse renews buy rating; 135 euros target.
(CercleFinance.com) - Credit Suisse reinstates coverage of the Solvay stock, with an outperform rating and a target price of 135 euros.
According to its analysts, the Belgian chemicals group's earnings outlook is not priced in.
Its research report says that, “We believe Solvay can generate above sector average organic earnings growth, supported by improving volumes, pricing power, and cash generation across its specialty chemical businesses.”
These are all catalysts that could be added to a potential sale of its Functional Polymers division, which would improve the group's balance sheet. However, the broker does not believe that this is yet priced in the share, which remains discounted relative to its peers and the sector in terms of EV/EBITDA.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
According to its analysts, the Belgian chemicals group's earnings outlook is not priced in.
Its research report says that, “We believe Solvay can generate above sector average organic earnings growth, supported by improving volumes, pricing power, and cash generation across its specialty chemical businesses.”
These are all catalysts that could be added to a potential sale of its Functional Polymers division, which would improve the group's balance sheet. However, the broker does not believe that this is yet priced in the share, which remains discounted relative to its peers and the sector in terms of EV/EBITDA.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.