Kepler ups Befesa on high expectations after U.S. AZR deal, China expansion

Befesa SA

08/02/2022 08:24

** Kepler Cheuvreux ups Befesa  BFSA.DE  to "buy" from
"hold", citing high expectations after the Luxembourg-based
metals recycling group reinforced its market leadership in
hazardous waste recycling with its U.S. acquisition and China
expansion
    ** According to the broker, the completion of the plants in
China  urn:newsml:reuters.com:*:nL8N2T05W0 and the American Zinc Recycling (AZR)
acquisition in the United States  urn:newsml:reuters.com:*:nASN001C1Z should shift the
focus to operational execution
    ** It also highlights synergy extraction from the AZR deal
and further expansion in the Chinese market, noting improved
capacity optimisation should improve margins in the medium term
    ** Kepler also sees evolution of metal prices, hedges and
treatment charges as further catalysts
    ** "We believe the recent market volatility has created an
attractive entry point for this high-quality stock," the broker
adds
    ** Out of 10 analysts that cover Befesa, eight rate the
stock "strong buy" or "buy"​ and two it rate "hold"
    
    


 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))