Croda Is M&A Candidate; Personal Care Issues Temporary: Goldman
2014-08-27 07:00:08.837 GMT
By Chiara Remondini
Aug. 27 (Bloomberg) -- Croda hasn’t lost high-value, high-
margin mkt share in personal care as weak organic growth due to
soft personal care mkt rather than structural issues, Goldman
Sachs says in note dated yday.
* Goldman Sachs reiterates buy, unchanged PT at 2,750p
* Says co. is strategic asset, potential M&A candidate given
strong industry position, attractive valuation; may appeal
to chemical cos. seeking to move further downstream
* Brokerage sees catalyst at 3Q earnings on Nov. 6, says stock
may re-rate if results in line with guidance, any indication
of improvement in organic growth
* Highlights positive impact from product introductions, start
of manufacturing of generic Lovaza
* Sees scope to return cash to shareholders through buyback,
special div. on strong cash generation, potential absence of
pension top-ups, “lack of meaningful” M&A
* NOTE July 22: Croda said it will manufacture generic Lovaza
with partner
* NOTE July 22: Croda CEO said Personal Care slowdown
temporary
* NOTE: co. trades ex interim div today
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-08-27 07:00:08.837 GMT
By Chiara Remondini
Aug. 27 (Bloomberg) -- Croda hasn’t lost high-value, high-
margin mkt share in personal care as weak organic growth due to
soft personal care mkt rather than structural issues, Goldman
Sachs says in note dated yday.
* Goldman Sachs reiterates buy, unchanged PT at 2,750p
* Says co. is strategic asset, potential M&A candidate given
strong industry position, attractive valuation; may appeal
to chemical cos. seeking to move further downstream
* Brokerage sees catalyst at 3Q earnings on Nov. 6, says stock
may re-rate if results in line with guidance, any indication
of improvement in organic growth
* Highlights positive impact from product introductions, start
of manufacturing of generic Lovaza
* Sees scope to return cash to shareholders through buyback,
special div. on strong cash generation, potential absence of
pension top-ups, “lack of meaningful” M&A
* NOTE July 22: Croda said it will manufacture generic Lovaza
with partner
* NOTE July 22: Croda CEO said Personal Care slowdown
temporary
* NOTE: co. trades ex interim div today
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net