Berenberg announced on Tuesday that it had lowered its recommendation on Solvay shares from 'buy' to 'hold' due to valuation issues.

In a research note, the broker says it is pleasantly surprised by the speed at which the share has recovered on the stock market since its separation from Syensqo.

The broker recalls that he was concerned about the increase in production capacity for soda ash, the company's main product, even though the payment of a comfortable dividend provides a degree of security.

Nevertheless, Berenberg points out that the stock market appreciation process for cyclical stocks with a high exposure to raw materials prices is often laborious, which has led it to downgrade its opinion on the stock.

Its price target has nevertheless been raised from €25 to €28.

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