Solvay: Jefferies still a seller, but raises TP

(CercleFinance.com) - Jefferies maintains its "underperform" rating on Solvay shares, while raising its target price for them from E81 to E84, after it raised its EBITDA estimates by an average of 2% for the Belgian chemicals group.


"Short-term earnings resilience has been supported by stronger net pricing than we expected, but also greater fixed cost absorption/inventory build throughout the first quarter", the broker says.

Nevertheless, Jefferies continues to question the sustainability of these factors, and remains sceptical about the justification for the group's targeted demerger, which is due to be completed in December.


Copyright (c) 2023 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.