Clariant: UBS notes an attractive entry point

(CercleFinance.com) - The analyst believes that the new portfolio will boost EBITDA and ROCE improvement.


UBS maintains a Buy rating on the stock, trimming its target price for it to 15 CHF (from 16 CHF), which represents 37% upside potential.

"ROCE, Earnings and FCF improve from FY24E. Sh price and multiples at decade lows, therefore represent attractive entry point", the broker says.

Clariant expects low single-digit sales growth in local currency in 2024. Reported EBITDA margin should improve to around 15%, while cost savings from restructuring programs should yield 25m CHF in 2024, the chemical industry company estimates.


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