Solvay: Jefferies downgrades stock
(CercleFinance.com) - Jefferies has downgraded the Belgian chemicals group Solvay's shares from "hold" to "underperform", having reduced its target price for them from 97 euros to 81 euros, citing an average forecast that is 7% below the consensus.
"Solvay's headline multiple appears inexpensive, trading at an EV/EBITDA 19% discount to key peers (historically 17% discount)," the broker acknowledged.
"However, whilst the uncertainty surrounding the split continues, in conjunction with end-market demand risk... we believe this discount is likely to be at least sustained or could expand further," it says.
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