Solvay: UBS still not a buyer.
(CercleFinance.com) - UBS has confirmed its sell rating on the Solvay stock, despite the Belgian chemical group publishing quarterly results that exceeded expectations.
The main argument is that the stock is overvalued: the broker maintains its target price at 100 euros.
Admittedly, in the second quarter, Solvay reported EBITDA of 667 million euros, up 11% y-o-y, above the consensus of 5%. Also up 11%, sales enabled the group to report quarterly earnings per share of 2.99 euros (+38%), exceeding the consensus of 26%. The Functional Polymers division, one of group's most cyclical divisions, was the main driver behind the group's outperformance.
In addition, Solvay raised its earnings estimates: now the group expects full-year underlying EBITDA to grow by around 10%, against about 5% previously: the consensus previously expected 7% growth.
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.
The main argument is that the stock is overvalued: the broker maintains its target price at 100 euros.
Admittedly, in the second quarter, Solvay reported EBITDA of 667 million euros, up 11% y-o-y, above the consensus of 5%. Also up 11%, sales enabled the group to report quarterly earnings per share of 2.99 euros (+38%), exceeding the consensus of 26%. The Functional Polymers division, one of group's most cyclical divisions, was the main driver behind the group's outperformance.
In addition, Solvay raised its earnings estimates: now the group expects full-year underlying EBITDA to grow by around 10%, against about 5% previously: the consensus previously expected 7% growth.
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.