Deutsche Bank on Tuesday renewed its buy recommendation on the 'new Solvay', with an adjusted target price of 28 euros, highlighting a company that is 'undervalued' by the market.

The research firm points out that, following the demerger of Syensqo, Solvay is now called upon to focus on well-established markets such as soda ash and peroxide, with the need to concentrate on cash generation and cost control.

From Deutsche Bank's point of view, the soda ash segment is nevertheless somewhat neglected by investors, even if it is true that the cluster will face a standardization process in 2024.

Combined with an "attractive" portfolio in peroxides, these businesses should enable Solvay to generate average annual Ebitda growth of 4.4% between now and 2028, according to the analyst's calculations.

Knowing that the stock is trading on the basis of an Enterprise Value/Ebitda ratio (a 32% discount to other soda ash specialists), an attractive FCF of 16.1% and a dividend yield of 11.6%, Deutsche today says it perceives "value" in the stock.

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