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Nexam Chemical: A step in the right direction - DNB

A step in the right direction Performance Chemicals returned to growth in Q3 and beat our sales estimate by 19%. Group sales, however, were only slightly above our forecast due to lower than expected Performance Masterbatch sales. Still, we find the Q3 results promising as we consider Performance Chemicals a key growth driver. Reactive Recycling appears on track; we view the segment as a future cornerstone of Nexam Chemical. We reiterate our fair value of SEK13–17.

A step in the right direction Performance Chemicals returned to growth in Q3 and beat our sales estimate by 19%. Group sales, however, were only slightly above our forecast due to lower than expected Performance Masterbatch sales. Still, we find the Q3 results promising as we consider Performance Chemicals a key growth driver. Reactive Recycling appears on track; we view the segment as a future cornerstone of Nexam Chemical. We reiterate our fair value of SEK13–17.
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