Umicore: shares surge as UBS upgrades to 'buy'

(CercleFinance.com) - Shares in Umicore are up almost 3% on Friday, after UBS upgraded the stock to "buy", saying the specialty materials group is in leading position to benefit from growth in electric cars.


The Swiss broker - which previously had a "neutral" rating on the - also raised its target price from 53 euros to 75 euros.

UBS says the Belgian company has a leading position in nickel-manganese-cobalt (NMC) cathodes, the main technology used for electric vehicles.

"We expect growth in EV battery materials to more than offset the decline in European auto catalysts," UBS writes in a research note.

While acknowledging the shares are trading at close to an historic peak, the broker says the long-term opportunity from electric vehicles is "significant" and views the current risk/reward profile as "compelling."

Umicore shares are currently up 2.9% at 60.2 percent, the sharpest riser in Brussels' BEL 20 index.

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