Morgan Stanley starts Victrex with 'overweight' on strong margins
04/02/2025 09:17
** Morgan Stanley starts coverage on Victrex Plc VCTX.L
with "overweight" rating
** Shares of VCTX up ~1% at 987p; MS sets 1,300p PT,
** VCTX is a top specialty polymer company with strong
margins, early recovery signs, lower costs, and an attractive
valuation, says MS in a note titled "Switch Up A Gear Or Two"
** For the broader specialty polymers market, MS expects
high barriers to entry with China's domestic growth crucial for
recovery, favoring European companies over U.S. ones, and
anticipating demand recovery from H2 2025
** Brokerage also upgrades European peer Syensqo NV
SYENS.BR to "overweight" from "underweight", citing potential
faster earnings growth in H2 2025
** In 2024, SYENS dropped 25% and VCTX fell 29%
(Reporting by Rashika Singh in Bengaluru)
((rashika.singh@thomsonreuters.com))