Jefferies upbeat on IMCD, Azelis as Q3 confirms earnings recovery

Azelis NV

11/11/2024 09:28

** Jefferies sticks to "buy" rating for speciality chemicals
distributors IMCD  IMCD.BR  and Azelis  AZE.BR , saying their Q3
results confirmed an expected recovery from a post-COVID decline
    ** It raises PT for IMCD by 3.5% to 176 euros; IMCD shares
rise 2.2% to 156.3 euros
    ** Azelis shares rise 1% to 19.69 euros, vs maintained PT of
24 euros
    ** Both companies saw EBITA recovery in Q3 (IMCD +11% yoy,
Azelis +3%) driven by higher organic revenue growth, benefiting
from stabilizing market trends, Jefferies says
    ** "IMCD and Azelis are leading consolidators in a
fragmented industry, and well positioned to benefit from further
industry consolidation," it adds
    ** It expects the sector to profit from a sustained organic
growth recovery in Q4 and high-single digit EBITA growth beyond
FY24
    ** IMCD and Azelis gained 4.7% and 7% respectively in the
last month, outperforming the Europe-wide STOXX chemicals price
index  .SX4P  which shed 2.1%

 (Reporting by Alban Kacher)
 ((alban.kacher@thomsonreuters.com))