DNB Markets - Nexam Chemical: A step in the right direction
Performance Chemicals returned to growth in Q3 and beat our sales estimate by 19%. Group sales, however, were only slightly above our forecast due to lower than expected Performance Masterbatch sales. Still, we find the Q3 results promising as we consider Performance Chemicals a key growth driver. Reactive Recycling appears on track; we view the segment as a future cornerstone of Nexam Chemical. We reiterate our fair value of SEK13–17.Q3 results. While group sales were slightly above our estimate, Performance Chemicals' sales exceeded our forecast by as much as 19%. Group organic growth was