Solvay: Crédit Suisse raises target price
(CercleFinance.com) - With Solvay considering selling some of its businesses (divestments), Credit Suisse believes that such restructuring would represent "the greatest potential".
This would mean numerous advantages, the broker says, including crystallising SOTP/value accretion, potential to accelerate deleveraging, while reducing group complexity.
According to its estimates, divestments could generate over 3 billion euros for the chemicals group.
Credit Suisse therefore maintains its "outperform" rating on the Solvay share and has increased its target price from 90 euros to 104 euros.
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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.
This would mean numerous advantages, the broker says, including crystallising SOTP/value accretion, potential to accelerate deleveraging, while reducing group complexity.
According to its estimates, divestments could generate over 3 billion euros for the chemicals group.
Credit Suisse therefore maintains its "outperform" rating on the Solvay share and has increased its target price from 90 euros to 104 euros.
Copyright (c) 2020 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.