Berenberg announced on Wednesday that it had initiated coverage of Mersen shares with a Buy recommendation and a price target of 45 euros.

In a research note, the analyst considers the manufacturer of industrial materials and equipment to be a "key" beneficiary of the booming silicon carbide (SiC) market.

According to him, sales and margins for the group, which supplies the electronics sector in particular, should be boosted by strong demand for the high-purity graphite specialties used in silicon carbide applications.

The intermediary points out that Mersen specializes in corrosion- and high-temperature-resistant materials such as wafers, but also in current-transmitting components such as interconnection bars.

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