IMERYS : Oddo BHF remains positive, reduces its target
July 05, 2023 at 05:52 am EDT
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Oddo BHF confirms its 'outperform' rating on Imerys shares, with a price target lowered from €60 to €55.
With publication of the 2nd quarter due on July 27 after close of trading, Oddo BHF is already anticipating 'a further deterioration in sales volumes'.
The analyst points to the unfavorable basis of comparison linked to a very dynamic Q2 2022, amplified by good trends in industrial activities.
Against this backdrop, Oddo BHF expects a 14% decline in sales volumes in Q2.
"In the end, sales should come out at 1,027 ME (-9% L/L, exchange rates -1%, scope 1%)", stresses the broker, who targets unchanged EBITDA for 2023 at 604 ME, but lowers his sales forecast to 3,932 ME vs. 4,258 ME "to take account of more difficult trends".
Oddo BHF believes that the share price could come under pressure in the coming days, despite its already difficult stock market performance.
Nevertheless, the analyst remains positive: "We believe that the stock has limited downside potential, given its recent poor performance and a recovery in momentum. An opportunity to strengthen at a good price", he adds.
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As a world leader in mineral specialties for the industry, Imerys offers high-added-value business solutions for a wide range of sectors, from process industries to consumer goods or construction products. The group actively mobilizes its knowledge of applications, technological expertise and materials science know how to provide high-end solutions that value its mineral resources, develop formulations or produce synthetic minerals. All these actions bring about essential properties to its customers' products and their performance such as refractoriness, toughness, conductivity, opacity, durability, purity, lightness, filtration, absorption, or hydrophobicity. Imerys is strongly committed to responsible developmentin particular, to contribute to the development of environmentally friendly products and processes. The activity is organized around 2 areas:
- Performance Minerals: the segment brings together three geographical business areas - Europe, Middle East and Africa (EMEA), America and Asia/Pacific (APAC). This segment encompasses functional additives that give unique properties to the products they compose. It serves the plastics, rubber, paint and coatings, filtration, ceramic materials, renewable energy, paper and cardboard, food, health and cosmetic industries;
- Materials and High Temperature Solutions: the segment, managed globally, brings together two business areas - High Temperature Solutions and Refractories, Abrasives & Construction. This segment facilitates production processes involving high temperatures. It serves the refractory, foundry, metals, abrasives and building chemicals markets.
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