UK's Yule Catto target share price raised by JP Morgan Cazenove

22 March 2012 12:54  [Source: ICIS news]

LONDON (ICIS)--Investment bank JP Morgan Cazenove on Thursday raised its target share price for UK-based producer Yule Catto following the successful integration of the groups polymer chemicals business.

The bank increased the specialty chemical companys target share price to £2.80 ($4.44, €3.37) from £2.50.

In March 2011, Yule Catto acquired Germany-based polymers producer PolymerLatex for €443m.

JP Morgan Cazenove said that in recent results Yule Catto’s core polymer chemicals division – which serves the paints, adhesives and carpets markets for example – saw progress despite customer destocking in the fourth quarter, with synthetic rubber for medical uses experiencing robust demand.

“Despite the 45% year-to-date appreciation, the shares still stand at a discount to the European and UK chemical sectors – which is not justified, we believe, given the success of the previous restructuring plan, the successful integration of the PolymerLatex acquisition, and the improved product portfolio and expansion in emerging markets,” JP Morgan Cazenove said.

The bank said it maintains its overweight status for Yule Catto.

(€1 = £0.83, $1 = £0.63)


By: Franco Capaldo
+44 (0)20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly