UBS raises Azelis to 'buy' on attractive discount to rival IMCD

Azelis NV

17/01/2025 09:51

** UBS upgrades Belgian chemicals distributor Azelis
 AZE.BR  to "buy" from "neutral" with a 15.8% PT increase to EUR
22 based on its discount vs Dutch rival IMCD  IMCD.AS 
    ** The analysts say the stock's around 25% trading discount
to IMCD on an EV/EBITDA basis offers an "increasingly attractive
entry point" 
    ** The brokerage expects the peak of profit pressures to
have been crested, with volumes set to recover, and predicts
4.5% organic gross profit growth for 2025 and 5% growth for 2026
    ** It calculates an annual EUR 150 million ($154.4 million)
available for M&A and notes past bolt-on acquisitions have
steadily closed the gap with IMCD
    ** Out of 17 analysts that cover Azelis, 14 rate the stock
"strong buy" or "buy" and ​three "hold" 

($1 = 0.9715 euros)

 (Reporting by Jakob Van Calster)
 ((Jakob.vancalster@thomsonreuters.com))