Jefferies ups IMCD, Azelis to 'buy' on improving market conditions

Azelis NV

03/09/2024 08:25

** Jefferies sees improvement in specialty chemicals
distributors markets conditions driving a recovery of organic
revenue growth and operational leverage from H2
    ** It upgrades Azelis  AZE.BR  and IMCD  IMCD.AS  to "buy"
from "hold", raising their respective PTs by 26.3% and 21.4% to
EUR 24 and EUR 170 
    ** Jefferies points to Azelis' comments on green shoots
driving a recovery of organic growth as end-market deterioration
eases, and easing comparatives for IMCD  IMCD.AS  despite its
limited visibility and no clear improving trends
    ** Jefferies ups estimates for both companies, assuming a
pick-up in organic revenue growth drives relatively strong
operational leverage resulting in high-single digit EBITA growth
beyond 2024
    ** It expects strategy updates from Azelis and IMCD new CEOs
to likely be key catalysts, underlining their positions as
leading formulation expertise providers
    ** Shares in Azelis rise 5.3%, touching their highest price
in 5 months, while those in IMCD gain 4.3%, reaching about 4.5
month highs

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))