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BUZZ-Morgan Stanley starts Victrex with 'overweight' on strong margins
10:17 04/02/2025
Reuters
Morgan Stanley starts coverage on Victrex Plc with "overweight" rating
Shares of VCTX up ~1% at 987p; MS sets 1,300p PT,
VCTX is a top specialty polymer company with strong margins, early recovery signs, lower costs, and an attractive valuation, says MS in a note titled "Switch Up A Gear Or Two"
For the broader specialty polymers market, MS expects high barriers to entry with China's domestic growth crucial for recovery, favoring European companies over U.S. ones, and anticipating demand recovery from H2 2025
Brokerage also upgrades European peer Syensqo NV to "overweight" from "underweight", citing potential faster earnings growth in H2 2025
In 2024, SYENS dropped 25% and VCTX fell 29%
(Reporting by Rashika Singh in Bengaluru)