Elementis: Resilience and Strategic Positioning Drive Buy Rating Amid Market Challenges

Analyst Vanessa Jeffriess of Jefferies reiterated a Buy rating on Elementis (ELM – Research Report), retaining the price target of p200.00.

Vanessa Jeffriess’s rating is based on Elementis’s ability to maintain strong performance metrics despite challenging market conditions. The company has shown resilience with improved EBITA and margins year-over-year, even in the face of weak demand. The Personal Care division remains a standout performer, and the Talc segment has shown positive progress, although it started from a lower base.
Additionally, management’s efforts to identify cost savings to offset tariff impacts and their reaffirmation of FY25F guidance contribute to a positive outlook. Despite uncertainties in demand, Elementis is seen as well-positioned to achieve its FY26F targets, with significant potential for improvement across the organization. This overall assessment supports the Buy rating, reflecting confidence in the company’s strategic direction and financial health.