Solvay shares were down on the Brussels Stock Exchange on Monday, the victim of a less favorable opinion from Deutsche Bank, which now considers the chemical group to be well valued.

At 12.10 pm, Solvay was down by around 0.2% and was one of the most heavily traded stocks on the BEL 20 index.

Analysts at Deutsche Bank point out that the chemical company's share price has risen by 33% since they initiated a buy on December 12.

The research firm attributes this upward movement to improving economic conditions, renewed optimism about the sector and the entry of US fund Greenlight into its capital.

But with a FCF/dividend yield of 8% and an Enterprise Value/Ebitda ratio of 6.3x, the stock of the 'new' Solvay (post-spin-off from Syensqo) is trading at much higher levels than that of the 'old Solvay', believes DB, which leads it to see only limited potential at present.

Deutsche Bank has therefore lowered its buy recommendation to 'hold', with the target price maintained at 31 euros.

Copyright (c) 2024 All rights reserved.