On Wednesday, Deutsche Bank initiated a buy recommendation on Syensqo shares, with a price target of €115.

In a research note, the analyst stresses that the specialty chemicals group's strategy is to beef up its research and make targeted investments, notably in polyvinylidene fluoride (PVDF), a polymer used as a separator in lithium-ion batteries, in order to boost sales growth.

In DB's view, Syensqo has all the qualities needed to become a leading player in the chemicals sector, with the potential to generate even more value through the disposal of its less dynamic activities.

On the basis of an Enterprise Value/Ebitda ratio of 8x, the financial intermediary nevertheless considers the stock to be excessively 'cheap' in relation to its comparables, which leads it to anticipate a stock market revaluation.

Since its first listing after the demerger from Solvay last Monday, the stock has already gained more than 19%.

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