Berenberg cuts Azelis on limited upside, cost-cut risks to growth

Azelis NV

05/06/2025 09:29

** Berenberg downgrades European chemicals distributor Azelis Group AZE.BR to "hold" from "buy," saying that short-term headwinds limit upside

** The brokerage highlights concerns over Azelis's leverage at near 3x, private equity ownership and weak Q1 results

** It also adds that the group's recently announced EUR 20 mln cost cuts -- if they affect hit variable compensation -- may impact sales team retention and mid-term growth

** "Sales teams are, in our view, the heartbeat of a distribution business, so any impact to salesperson compensation is a concern," the broker says

** Given limited short-term catalysts for appreciation, Berenberg lowers its PT by 19% to EUR 17, about 15% above the current share price

** Out of 16 analysts that cover Azelis Group, 13 rate the stock "strong buy" or "buy,"​ three rate it "hold"

 (Reporting by Hugo Lhomedet)

 ((Hugo.Lhomedet@thomsonreuters.com;))