Jefferies 'switches preferences' on European Chemicals
14/09/2022 11:55
** Jefferies says it switches its preferences for European
Chemical companies, expecting volume growth to be a primary
driver of earnings momentum and sentiment over FY 2023
** The brokerage initiates Danish Chr Hansen CHRH.CO at
"underperform", expecting operating momentum for the company to
likely remain challenging through the coming 12 months
** It starts Kerry Group KYGa.I at "hold", saying volume
headwinds are more limited than peers near-term but seeing
mid-term challenges rising and fading prices posing a challenge
to organic growth
** It initiates Treatt TET.L with "buy", deeming FY profit
warning an attractive entry point urn:newsml:reuters.com:*:nASM000NAY
** It upgrades Croda CRDA.L and DSM DSMN.AS to "buy"
urn:newsml:reuters.com:*:nL8N30L0KB
** Brokerage highlights the long-term growth outlook of the
Life Sciences business for UK's Croda, expecting the company's
LS update in October to be well-received
** It cites low valuation of DSM's Nutrition business ahead
of the closing of its merger with Swiss Firmenich, estimates it
trades at around 17% discount to peers, making the implied
multiple for the merger "more reasonable" at about 18x EV/EBITDA
(pre synergies)
** It downgrades Novozymes NZYMb.CO to "hold" on estimated
slower organic growth in FY 2023
(Reporting by Ina Kreutz)
((ina.kreutz@thomsonreuters.com))