Nexam Chemical: Part of the solution, not the pollution - DNB

Q4 sales were 9% below our forecast, largely reflecting lower growth in Performance Chemical than we expected (27% YOY versus our 50%). However, the more mature Performance Masterbatch again met our expectation, with 17% sales growth YOY. We have lowered our 2022–2023e sales by 8–7%, but still believe the 2022 run-rate sales target of SEK275m–325m is within reach. We have also lowered our fair value to SEK14–19 (15–20), but consider the company well-positioned to continue executing on its profitable growth journey. We see a solid plastics recycling business case and view Nexam Chemical as part of the solution, not the pollution, something we believe the market is overlooking.

Länk till analysen i sin helhet: https://www.dnb.no/seg-fundamental/fundamentalweb/GetReportSpon.aspx?file=CMPSP_187802.pdf