On Thursday, Berenberg made a revision to the price target for Solvay SA (EBR:SOLB:BB) (OTC: SOBS), reducing it to €32.00 from the previous €35.00, while retaining a Hold rating on the stock.
Berenberg's analysis highlighted that Solvay experienced a favorable period in 2024, largely due to stable soda ash pricing, which allowed the company to maintain consensus estimates steady despite forecast reductions for other diversified industrial companies. Solvay's stock performance was bolstered by a combination of factors including a low initial valuation, robust cash flow, appealing dividends, and an endorsement from renowned investor David Einhorn.
Looking ahead to 2025, Berenberg suggests that the outlook may not be as bright. Although current consensus EBITDA estimates are considered reasonable, and could potentially be conservative when accounting for the impact of a stronger US dollar, the firm notes that Solvay's shares are no longer as attractively priced as they once were.
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