By 2025, $IMCD (-2,64%) lost over 46% in market value, while during this period European stocks gained an average of 10%. The lowest share price since January 2020, what's going on?
The European chemical sector is under pressure, which has to do with the trade wars. Macroeconomics are not doing great either and the gloomy sentiment surrounding the chemical sector (competition from China) is not helping.
Nevertheless, I decided to include this stock in my portfolio, why?
- Analysts are very enthusiastic about the stock, with a buy recommendation and average forecast of €130.50 (+/- +70% current price);
- Acquisitions: IMCD made six acquisitions by 2025 and over a hundred in the last twenty years. Nevertheless, the top ten still only control 13% of the market, so there are still plenty of opportunities;
- Outsourcing sales activities to distributors;
- Buying back own shares: directors hint at buying back own shares.
For me, enough reasons to get into $IMCD (-2,64%) ! 📈
Wondering how others look at this, what do you guys think?