Solvay: Stifel upgrades stock

(CercleFinance.com) - Stifel has upgraded its rating on the Solvay share from "keep" to "buy" and has raised its corresponding target price from 71 euros to 117 euros, stating that it is becoming "more optimistic on the growth in Specialty Polymers and Soda Ash".


"The investment case is not only driven by the earnings recovery, but also portfolio optimization, cost-cutting, financial deleveraging and structural FCF improvements," the broker says.

Stifel believes that the Belgian chemical group's EBITDA could marginally beat expectations in Q4, and that after resisting well in 2020, the group's earnings recovery in 2021 could actually only be modest.



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