Mersen's share price soared by over 5% following the publication of several positive analyses.

Stifel reaffirmed its 'buy' recommendation on Mersen with a target price raised from 50 to 54 euros, citing the publication of results for 2022 deemed 'impressive' and solid targets for 2023.

According to the broker, last week's publication demonstrated once again that the industrial group specializing in graphite "benefits from strong underlying momentum linked to the energy transition".

Stifel now anticipates organic growth of 8% a year over the period 2021-27. He believes that "the new growth plan and the new leadership in SiC will give the Group a new dimension that would justify new multiples".

Oddo BHF also reiterates its "outperform" opinion on Mersen, with a price target raised from €47 to €48, judging in particular that "the roadmap presented by management for 2027 is particularly attractive".

The 12% recurring operating margin target for 2027 (plus or minus 50 basis points) seems totally plausible to us, if not cautious, hence the higher revision margin despite Capex due to a more favorable mix", he points out.

On the basis of this development plan, the valuation remains moderate at 6.2 times EBITDA expected for 2024 and 9.8 times EBIT (compared with 7.3 and 11 times for historical references)", the analyst in charge of the file also points out.

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