UBS confirms its buy recommendation on the stock, with an unchanged target price of 16 Swiss francs. This target implies a 25% rise in the share price from its current level.
Clariant announced yesterday the closure of its Romanian bioethanol plant. The analyst believes that the closure of Sunliquid will come at a high cost.
' The cost of closing Sunliquid is expected to be between 110 and 140 million Swiss francs in 2024' stresses UBS.
An additional charge of 110 million Swiss francs, including a provision for impairment of the Podari facilities, will also be taken in the quarterly and annual financial statements. For fiscal year 2024, Clariant estimates the impact of these decisions on its cash position at between CHF 110 and 140 million.
Copyright (c) 2023 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Clariant AG is a Switzerland-based producer of specialty chemicals. It operates through three business areas: Care Chemicals, Catalysis, Natural Resources. The Business Area Care Chemicals serves customers in the personal care, home care, paints and coatings, and crop solutions markets. Business Area Catalysis offers catalytic and biofuel solutions. The Business Area Natural Resources offers products and customer-tailored solutions for mineral, foundry, oil, and gas extraction businesses, as well as for food, plastics, coatings, adhesives, and inks applications.