Solvay: Oddo confirms rating.
(CercleFinance.com) - Oddo maintains its Neutral rating on the Solvay stock, with a target price of 135 euros, after the announcement of the planned disposal of Polyamides to BASF.
The disposal price amounts to 1.6 billion euros, i.e. 6x 2017e Ebitda, a level at the top of Oddo BHF's estimates. This will reduce the group's net debt by 1.1 billion euros which, in pro-forma terms, reaches 4.6 billion euros.
Oddo BHF said in its daily research report that as part of this announcement of plans to divest Polyamides, management has also said that it is cutting its EBITDA growth guidance for this year by an additional 1%, due to the sharp appreciation of the euro against the dollar over the summer.
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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 disposal price amounts to 1.6 billion euros, i.e. 6x 2017e Ebitda, a level at the top of Oddo BHF's estimates. This will reduce the group's net debt by 1.1 billion euros which, in pro-forma terms, reaches 4.6 billion euros.
Oddo BHF said in its daily research report that as part of this announcement of plans to divest Polyamides, management has also said that it is cutting its EBITDA growth guidance for this year by an additional 1%, due to the sharp appreciation of the euro against the dollar over the summer.
Copyright (c) 2017 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.