Exane BNP Paribas ups Solvay citing less earnings downside risk

Solvay SA

02/05/2025 09:09

** Exane BNP Paribas ups Belgian chemicals group Solvay     SOLB.BR to "neutral" from "underperform" citing less downside risk to earnings, in a low sector growth period

** "In the context of a 'temporary slowdown' in 2025 as the base case across our Chemicals coverage, we think Solvay has relatively less downside to earnings vs cyclicals," broker says

** The broker turns "constructive" on soda ash utilisation rates and mid-term supply/demand dynamics and raises forecasts

** "Historically, Solvay has demonstrated low margin volatility supported by resilient global soda ash volume growth (only two down years since 1997)," Exane says

** Broker raises PT by 14.3% to 32 euros

** Shares in Solvay edge up about 1.4% to 33.8 euros

** Of 18 analysts covering Solvay, six rate it "strong buy"/"buy", ​eight "hold" and four "strong sell"/"sell"

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))