(Sharecast News) - Analysts at Berenberg raised their target price on chemicals firm Elementis from 160.0p to 180.0p on Monday, stating the group's interim results last week were only a taste of things to come for the next two years".
Berenberg expects to see steady operational delivery against a backdrop of cyclical recovery, with the incipient recovery in the chromium cycle and improving sales of colour cosmetics likely to ensure that earnings growth outpaces the industrial chemicals sector moving into 2022.
The German bank also pointed out that a recovery in earnings should be matched by a classic re-rating as debt falls.
"We expect net debt/EBITDA to decline from 3x at H1 2021, to 1.5x by the end of 2023," said Berenberg, which reiterated its 'buy' rating on the stock.
"In short, shares have a lot to offer beyond the cyclical recovery of 2021 - something that has not gone unnoticed by would-be suitors."
Elementis (ELM)8 May 2024 09:39
LONDON BROKER RATINGS: UBS raises Centrica to 'buy' from 'neutral
(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday: