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Investing.com - Kepler Cheuvreux downgraded Azelis Group NV (BR:AZE) from Buy to Hold on Thursday, while reducing its price target to EUR14.00 from EUR19.00.
The research firm lowered its 2025, 2026, and 2027 EBITA estimates for the specialty chemicals distributor by 7%, 7%, and 6% respectively, following the company’s second-quarter results.
Kepler Cheuvreux noted that while Azelis’ long-term fundamentals remain intact, the company faces the same short-term cyclical headwinds as its peer IMCD (AS:IMCD).
The downgrade reflects concerns about Azelis’ higher leverage, which Kepler believes weighs on the risk-reward profile, along with its relative valuation compared to IMCD.
The new price target is based on an 11x EV/EBITDA multiple, representing a 30% discount to Kepler’s target IMCD multiple valuation, which the firm notes is at the high end of the historical range due to leverage concerns.
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