Elementis Maintains Strong Market Position and Financial Health Amid Challenging Conditions, Earning Buy Rating

Vanessa Jeffriess, an analyst from Jefferies, reiterated the Buy rating on Elementis. The associated price target remains the same with p200.00.

Vanessa Jeffriess has given her Buy rating due to a combination of factors, including Elementis’ robust sales performance in the third quarter, which was particularly notable given the challenging market conditions. The company’s ability to maintain flat year-over-year sales in constant currency terms, especially in the Coatings division, highlights its strong market position and pricing power.
Additionally, Elementis’ decision to maintain its FY25 guidance underscores its effective cost control measures and suggests potential outperformance in margins. Despite some fluctuations in cash flow, the company’s net debt forecast remains stable, providing further confidence in its financial health. The recent announcement of leadership changes does not alter the positive outlook, reinforcing the Buy recommendation.