DNB Markets - Nexam Chemical: Significant opportunity on horizon
Offering a strong sustainability and economic business case, Nexam Chemical is exposed to structural growth, and has already built strong relationships with market leaders in its focus areas. We believe the runway for growth and improving margins as early as 2022 is not reflected in the valuation, with the stock trading at a 40% discount to our peer group. We initiate coverage with a fair value of SEK8–12.Solid business case ‘riding’ on sustainability trends. Nexam Chemical’s products enhance the properties and performance of polymers, allowing end-users to substitute more expensive and