Syensqo FIRST LOOK: FY23 EBITDA in line with CSS, guidance below expectations

Syensqo posted a 13% drop in FY23 uEBITDA, which was bang in line with consensus and about 2% below KBCS forecasts. FY24 uEBITDA guidance of 1.4-1.55bn represents a 4-13% y/y drop and is below consensus (1565m) and even more KBCS forecasts (1644m). We will lower our forecasts. Despite the tougher short-term momentum, we still appreciate Syensqo, the specialty-focussed chemicals businesses of the former Solvay group, for its solid market positions, strong balance sheet and solid mid to long term growth potential. Valuation is clearly discounted and prompts us to reiterate our BUY rating.