(CercleFinance.com) – Berenberg announced on Tuesday that it had lowered its recommendation on Solvay shares, from ‘buy’ to ‘hold’ for valuation reasons.
In a research note, the broker says it is pleasantly surprised by the speed at which the stock has revalued on the stock market since its separation from Syensqo.
The broker recalls that he was nevertheless worried about the increase in production capacities affecting sodium carbonate, its main product, even if the payment of a comfortable dividend provides a certain security, according to him.
Berenberg nevertheless points out that the process of stock market appreciation of cyclical securities highly exposed to commodity prices often proves laborious, which leads him to downgrade his opinion on the stock.
However, its price target goes back from 25 to 28 euros.
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