29 March 2012 12:44 [Source: ICIS news]
LONDON (ICIS)--Solvay’s shares rose on Thursday after investment bank Credit Suisse upgraded the Belgian chemicals major’s rating to “outperform” from “neutral”.
At 11:00 GMT, shares in Solvay were trading at €87.64, up by 2.40% from the previous close.
Credit Suisse said that the market is underestimating the combined earning power of Solvay and French specialty chemicals firm Rhodia, which the Belgian company acquired for €3.4bn ($4.5bn) in August 2011.
“We believe the Solvay and Rhodia combined group has [a] more resilient and higher growth earnings profile. This, in conjunction with a business restructuring opportunity, provides the scope for earnings upgrades and a valuation multiple rerating,” it said.
Credit Suisse also increased its target price for Solvay to €100/share from €94/share.
($1 = €0.75)
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