KBC adds Azelis to top pick list on Q4 hopes, removes Solvay

Solvay SA

07/11/2024 11:05

** KBC replaces Solvay  SOLB.BR  with Azelis  AZE.BR  in its
Dynamic Top Pick list, expecting the latter to report organic
growth in all regions in Q4 for the first time since Q3 2022
    ** Shares in Azelis rise 7.5%, on track for their best day
since April if gains hold, while Solvay falls 2.5%
    ** KBC says that Azelis improved gross profit margins over
the years regardless the overall product mix
    ** Broker also sees the discount with IMCD  IMCD  to
decrease after the Dutch peer's Q3 results given a similar
currency impact and higher operating expenses
    ** It cites Solvay's "solid" share price rally in the past
few months as a reason for removal from its list, seeing better
risk/reward elsewhere
    ** Broker also points to "no major acceleration" in a number
of its end-markets, "weak" construction markets, and expanding
Chinese soda ash production

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))