Stifel initiates a follow-up on Syensqo with a 'buy' recommendation and a price target of 125 euros, a target implying a potential upside of around 26%, expecting the stock to revalue relative to its 'old' Solvay multiples.

While the broker is cautious for 2024, he points out that his estimates are at the upper end of the Group's targets from 2025 onwards, recalling that Syensqo is aiming for 5 to 7% average annual growth until 2028.

The Group is already at the upper limit in terms of EBITDA margin among our chemical coverage, but still has potential for growth based on its ambition to increase its margin from 23% to 25% by 2028", adds Stifel.

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