Clariant: UBS still a buyer, trims TP

(CercleFinance.com) - UBS highlights the increase in margin forecasts, but considers that there are few signs of recovery in the short term.
The analyst confirms his buy recommendation on the stock, but trims his target price to E16 (from E17).

Margins should improve from now on, but signs of recovery are limited in the near term, UBS says.

For FY 2024, Clariant's reported EBITDA margin should improve to around 16%, up 100 basis points from the previous estimate of around 15%. The group also expects stable to low single-digit sales growth in local currency.

For 2025, Clariant expects to achieve an EBITDA margin of 17% to 18%, with a free cash flow conversion rate of around 40% at the targeted level.


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