Clariant: Credit Suisse downgrades to sell
(CercleFinance.com) - Credit Suisse now recommends investors sell ("underperformance") the Clariant share, having downgraded its previous "neutral" rating on the stock.
The broker has cut its target price for the share from 26.3 Swiss francs to 22.5 Swiss francs.
According to analysts, the sudden arrival of the Saudi industrialist SABIC in shareholder negotiations, replacing White Tale's activist funds, “reduces the short-term likelihood of a breakup scenario”. Indeed, the Swiss speciality chemist will probably focus on organic growth and acquisitions.
As a result, the valuation of the Clariant share should return to "more normative levels," while at present it is trading at a premium relative to its sector, Credit Suisse believes.
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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.
The broker has cut its target price for the share from 26.3 Swiss francs to 22.5 Swiss francs.
According to analysts, the sudden arrival of the Saudi industrialist SABIC in shareholder negotiations, replacing White Tale's activist funds, “reduces the short-term likelihood of a breakup scenario”. Indeed, the Swiss speciality chemist will probably focus on organic growth and acquisitions.
As a result, the valuation of the Clariant share should return to "more normative levels," while at present it is trading at a premium relative to its sector, Credit Suisse believes.
Copyright (c) 2018 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.