(Boursier.com) — Solvay lost 1.7% to 27.25 euros at the end of this Friday morning, while Deutsche Bank is buying the file by raising its target from 29 to 31 euros. The founder of Greenlight Capital, David Einhorn, already a shareholder of the chemical group, has just highlighted the low valuation of the company and the “above average” management of the company. “We believe this boring essential chemicals business will generate attractive, risk-adjusted returns for investors,” the specialist said, as quoted by ‘Bloomberg’, at the ‘Sohn Investment Conference’ in New York. Solvay has seen a 43% jump since splitting from chemical maker Syensqo last December.
For the full year 2024, Solvay forecasts organic underlying EBITDA growth of -10% to -20% compared to a high comparison base in 2023, particularly in H1. This translates to a range of 925 million to 1,040 million euros at a EUR/USD exchange rate of 1.10.
Organic growth in underlying EBITDA is calculated based on restated EBITDA of 1,154 million in 2023 (compared to published EBITDA of 1,246 million).
Free cash flow to shareholders from continuing operations is expected to be greater than €260 million, in accordance with the prioritization of the use of cash presented during the Capital Market Day in November 2023. It is supported by Solvay’s ability to adapt its investments and its working capital requirements in order to ensure the financing of its activities and the payment of dividends while maintaining the solidity of its balance sheet intact.
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