Solvay: Rare earth optionality is significant; upgrade to HOLD

研报英文原文证据摘录

Solvay: Rare earth optionality is significant; upgrade to HOLD

Deutsche Bank

Research

Rating Company Date

Hold Solvay 10 June 2026

Recommendation

Europe Change Belgium

Reuters Bloomberg Exchange Ticker Price at 9 Jun 2026 (EUR) 25.80

SOLB.BR SOLB BB BRU SOLB

Price Target (EUR) 26.00

Chemicals

ADR ISIN 52-week range (EUR) 30.30 - 24.50

Bulk

SVYZY US8344372045

Rare earth optionality is significant;

Valuation & Risks upgrade to HOLD

Tristan Lamotte

Summary: upside opportunity on rare earths drives upgrade to HOLD Research Analyst

Solvay’s share price is now €25.8/share (versus €27.8/share when we downgraded +44-20-7547-1862

the stock on 24 November 2025, SX4P +10% over the same period). We are now

Virginie Boucher-Ferte

upgrading Solvay to HOLD. We still see operational risks: guidance could be cut, Research Analyst

soda ash remains challenging, construction markets are soft and free cash flow is +33-1-4495-5934

under pressure. However, we now see a growing likelihood that Solvay can use its

Rajiv Dalal

rare earth capabilities to unlock shareholder value, which creates unique upside

Research Associate

optionality. We see three key points: (1) we believe rare earths could add up to 13%

(initially €100m) to EBITDA, (2) from a market perspective, ex-China, rare earths

should see considerable growth (supply & demand side), and (3) a positive outcome Saurabh Mehndiratta

on a rare earth project (if it comes) could drive share price upside. The stock trades

at a 7.5x 2026E EV/EBITDA, a premium to peers that we now view as justified by rare

earth optionality. HOLD. Dimitri Druart

+33-1-4495-5937

Three key points

We highlight three key points. (1) Rare earths could offer very attractive returns,

Key changes