(CercleFinance.com) – Credit Suisse maintains its ‘outperformance’ opinion on Lanxess, but lowers its price target from 67 to 58 euros, due to an 18% reduction on average in its 2022-24 EBITDA expectations in due to the deconsolidation of the joint venture with Advent.
“We believe that the transaction is clearly positive”, nevertheless judges the broker who points in particular to a cash inflow of 1.1 billion euros, reducing the debt ratio and an accretive effect on EPS thanks to share buybacks.
“Strategically, the joint venture continues to improve the mix of the group and should support cash generation,” adds Credit Suisse, which highlights increased exposure to more defensive end markets such as personal care.
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