Berenberg starts 'buy' on Avantium's PEF plans with 'nature's sleeping giant'

Avantium NV

30/11/2021 12:39

** Berenberg initiates coverage of Avantium  AVTX.AS  with
"buy", citing the company's plans to commercialize a promising,
high-performance bio-based plastic called PEF using FDCA, a key
component nicknamed "nature's sleeping giant" 
    ** The Dutch environmental research and development firm
expects to be the first company to commercialize PEF in 2023/24
    ** Berenberg says PEF has historically been difficult to
make due to challenges in producing FDCA, but Avantium's new
sugar-based production technique means it can now produce PEF in
a cost-effective, efficient and sustainable way
    ** PEF has a much better environmental profile compared to
other plastics, says broker, and its production process emits
about 50-70% less CO2 than production of PET for common bottle
plastic
    ** Berenberg estimates Avantium should make just over 200
million euros on a fully consolidated basis
by 2030 at an EBITDA margin of about 30%, driven by tech licence
sales 
    ** Avantium's shares are up nearly 5% at 1200 GMT


 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))