Solvay: Deutsche Bank nudges up TP

(CercleFinance.com) - On Friday, Deutsche Bank raised its target price for Solvay shares from E29 to E31, ahead of the chemical group's Q1 results, due out on 7 May.


The broker - which maintains its "buy" recommendation on the share - explains that it has significantly raised its Ebitda forecast for Q1.

It now anticipates current operating income of E241m, down around 32%, a figure slightly higher than the consensus figure of E238m.

Pointing out that price cuts are now partly offset by higher volumes, the analyst expects Solvay to maintain its FY Ebitda target range of E925m to E1.04bn.

Finally, Deutsche points out that the stock is currently trading on the basis of an EV/Ebitda multiple of 6.1x and an "attractive" FCF yield of 9%.


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