KBC cuts IMCD to 'hold', says peer Azelis is 'cheaper'

Azelis NV

25/01/2024 11:28

** KBC Securities cuts specialty chemicals maker IMCD
 IMCD.AS  to "hold" from "accumulate" citing lower sales
estimates and pointing to a "cheaper alternative" in Belgian
peer Azelis  AZE.BR , which it rates "buy"
    ** It cuts IMCD's PT by 2.8% to 140 euros
    ** "While IMCD's stronger balance sheet and shareholder
structure justifies a premium, margin dynamics in APAC
(Asia-Pacific) show that a discount is also justified," - KBC
    ** The brokerage cuts its Q4 revenue expectations for IMCD,
by 9% to 1.08 billion euros, citing an expected sales
contraction in Asia–Pacific, and in the Americas 
    ** It also cuts Q4 gross profit margin estimate to 23% from
23.8% as it factors in more seasonality, lower revenues, and
additional price pressures 
    ** Out of 16 analysts that cover IMCD, eight rate the stock
"strong buy" or "buy", four rate it "hold" and four​ rate the
stock "strong sell" or "sell"
    

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))