Berenberg moves Imerys to 'hold' on lack of catalysts

Imerys SA

24/01/2025 07:34

** Berenberg cuts Imerys  IMTP.PA   to "hold" from "buy" and
lowers its PT by 29% to EUR 32, citing lack of short-term
catalysts and no recovery in its high-purity quartz business
    ** Broker notes the speciality minerals company's underlying
business has stabilised and expects positive trends from Q3 to
continue in Q4
    ** However, Berenberg struggles to "see the share
outperforming" and points as well to tough comparables due to
strong historic contribution from The Quartz Corporation joint
venture slowing as oversupply in the solar industry persists
    ** It adds it expects Imerys to "wait-and-see" whether to
build its lithium pilot plant in 2025, given the 30% y/y drop in
lithium prices
    ** In terms of earnings, the broker slightly tweaks its
adjusted EBITDA estimate for 2025 to EUR 647 mln from EUR 652
mln, and trading on 5.0 times EV/adjusted EBITDA it does not
think the shares are expensive 
    ** Out of seven analysts that cover Imerys, four rate the
stock "strong buy" or "buy,"​ two rate it "hold" and one rates
the stock "sell"

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