Chemical Distribution: Updating Estimates

Research evidence excerpt

Chemical Distribution: Updating Estimates

Idea

May 14, 2026 03:40 PM GMT

Morgan Stanley & Co. International plc+MChemical Distribution | Europe Annelies Vermeulen

Equity Analyst

Updating Estimates Annelies.Vermeulen@morganstanley.comRemi Grenu +44 20 7425-4367

Remi.Grenu@morganstanley.com +44 20 7425-0552

We update estimates and highlight key takeaways/debates for Zachariah Al-Qaryooti

the chemical distributors following 1Q26 results, including ResearchZach.Al-Qaryooti@morganstanley.comAssociate +44 20 7425-2400

potential implications from the Middle East conflict. We also

Business Services

refresh our quarterly benchmarking analysis. Remain Equal- Europe

weight Azelis and IMCD, Underweight Brenntag. Industry View Attractive

What’s Changed

Taking stock and key debates. Along with other Distributors in our coverage, the Azelis (AZE.BR) From To

Chemical Distributors have been among the best performers in the sector year to Price Target €10.50 €12.00

date (BNR +23%, IMCD +25%, AZE +13%, vs MSCI Comm & Prof Services -14% and Brenntag SE (BNRGn.DE) From To

MSCI Chems +4%), with material multiple re-rating on no underlying earnings Price Target €46.00 €52.00

changes. Brenntag now trades in line with IMCD at 17x 1y fwd P/E, and above the LT IMCD NV (IMCD.AS) From To

average of 15x. IMCD shares now on 17x 1y fwd P/E (albeit remaining below the LT Price Target €95.00 €105.00

average of 22x) and ~12x EV/EBITDA, while Azelis now trades on 14x 1y fwd P/E

(vs~18x average since IPO) and ~9x EV/EBITDA. With rising energy costs and

expected input cost inflation, these stocks have outperformed and re-rated on their

perceived ability to pass on higher product pricing (as was the case in 2022), and

therefore offer a hedge against inflation. 1Q results were fairly in line across the