Solvay: Stifel nudges up TP

(CercleFinance.com) - Stifel maintains its 'Hold' rating on Solvay shares, slightly raising its target price from E28 to E29.


The broker reports that its Q1 EBITDA forecast is below consensus, due to lower assumptions for the Performance Chemicals division.

Stifel expects FY EBITDA of E944m, slightly below consensus (E978m), while Solvay is targeting a range of E925m to E1040m.

The broker points out that Solvay's dividend yield of 9% is the highest of all the companies covered by Stifel.

Nevertheless, the analyst believes that FCF will not enable the group to raise its dividend in the near term, due to limited growth prospects and increased investment requirements in the future.


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