Syensqo FIRST LOOK: 2Q uEBITDA -11% organ., FY guidance range narrowed down

2Q underlying EBITDA declined by 11% organically and was slightly below our and consensus forecasts. Syensqo narrowed the FY guidance range to the lower half as they see a slower than expected recovery in certain end markets. Despite the uninspiring 2Q results and 2H outlook, we still appreciate Syensqo, the specialty-focussed chemicals businesses of the former Solvay group, for its solid market positions, strong balance sheet (1.3x leverage) and solid mid to long term growth potential. Valuation is clearly discounted vs peers and prompt us to reiterate our BUY rating.