'Rare earth optionality is significant' - Solvay rises after DB ups to 'hold'
BUZZ-'Rare earth optionality is significant' - Solvay rises after DB ups to 'hold' ** Shares in Solvay SOLB.BR rise 3% after Deutsche Bank upgrades the Belgian chemical company to "hold" from "sell" citing a rare earth upside
** "We now see a growing likelihood that Solvay can use its rare earth capabilities to unlock shareholder value, which creates unique upside optionality," says the broker
** DB sees up to a 13% upside to group EBITDA from rare earths, adding these should see "considerable growth" in supply and demand outside China
** "We still see operational risks: guidance could be cut, soda ash remains challenging, construction markets are soft and free cash flow is under pressure," DB says
** Up to the previous session's close, shares were down 5.2% YTD - LSEG data
** Out of 16 analysts that cover Solvay, two rate the stock "strong buy" or "buy," eight rate it "hold" and six rate the stock "strong sell" or "sell" - LSEG data
(Reporting by Dimitri Rhodes in Gdansk)
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