UK specialty producer Yule Catto shares up as UBS lifts price target

15 March 2012 12:11  [Source: ICIS news]

LONDON (ICIS)--Shares in Yule Catto rose on Thursday after Swiss investment bank UBS raised the UK specialty chemical company’s price target by 25 pence to 260p following strong 2011 results and expected further progress in 2012.

At 11:12 GMT, Yule Catto’s shares on the London Stock Exchange were trading at 229.85p, up by 0.42% from the previous close.

On Wednesday, Yule Catto reported a net loss of £5.30m ($8.41m, €6.39m) for the full year of 2011 from a net profit of £55.3m in 2010, as the company incurred losses from discontinued operations.

However, excluding the loss from discontinued operations, Yule Catto’s underlying net profit in 2011 almost doubled to £63.7m from £32.2m in 2010.

“Full year 2011 profitability was in line with consensus as easing key raw material prices such as butadiene helped offset severe fourth quarter destocking [-13% volume declines],” UBS said.

“This has not continued into 2012, with Yule Catto volumes improving sequentially quarter on quarter [but still below year on year] and management expects to make further progress throughout the year,” it added.

UBS maintained a "buy" rating for Yule Catto.

($1 = £0.64, €1 = £0.83) 

By: Leigh Stringer
+44 208 652 3214

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