JPM cuts OCI to 'neutral' as M&A in the mix delays value unlock

OCI

16/10/2024 13:53

** J.P.Morgan downgrades chemicals maker OCI  OCI.AS  to
"neutral" from "overweight", citing uncertainty on its M&A
strategy that limits near-term upside
    ** OCI has indicated that it is considering M&A as part of
future strategy, which will likely prevent or at a minimum delay
the full sum-of-the-parts (SOTP) value unlock, it adds
    ** JPM cuts its PT by 13% to 26 euros, reflecting a discount
to its SOTP valuation of 31 euros
    ** Part of the discount is also based on uncertainty on the
potential cash leakage from withholding tax on future cash
distributions, JPM says
   

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))