(CercleFinance.com) – Berenberg renewed its buy recommendation on Imerys on Friday, with a target price of 50 euros, believing that the mineral valuation specialist has many growth levers.
“We believe that the main catalyst behind the stock price over the past three months has been the announcement of the launch of the Emili lithium mine project in central France,” recalls the intermediary.
The analyst also indicates that the group also unveiled, last month, nine-month results in line with expectations, together with forecasts deemed ‘realistic’ for the entire financial year.
“2023 is likely to be a tough year for the company as we anticipate a 4.1% decline in business volumes due to its 40% exposure to the construction sector,” he adds.
‘However, we consider that the current valuation constitutes a support element with an enterprise value/Ebitda ratio of 6.9x by 2023’, concludes Berenberg.
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