The factors in favour of a rise in the Solvay share price:
First of all, let us recall that the Solvay group is one of the oldest groups in its sector of activity, namely specialty chemicals. It has now become a pure player in this field and has a very strong presence in France since the acquisition of Rhodia in 2011.
Still from the point of view of this company's positioning on its market, we can also emphasize that its international presence is also interesting. Solvay benefits from an excellent geographic distribution of its activities, with 30% of its sales realized in Europe, 37% in America and 33% in Asia. Thanks to this homogeneous distribution, the Group is protected against risks linked to local economic or regulatory events.
The Solvay group has also been able to reassure investors thanks to the distribution of its offers on different target markets.
Analysts specialising in this stock also agree that one of the group's greatest strengths is its quality strategy. This strategy is based on three main points: firstly, the reduction of cyclical activities in favour of high performance solutions through Novecare, polymers and specialty chemicals or for the automotive and connected objects sectors. The second point is of course innovation, which is the company's core business, and the last point concerns its positioning and expansion worldwide.
If Solvay's strategy shows great interest, so does the company's management. Analysts point in particular to the group's good ability to increase its sales prices, which is proof of its negotiating strength and increased customer loyalty.
The recent fall in the value of the euro is also an undeniable advantage for the Solvay group, which is thus more competitive with its main competitors and in its sales abroad. The same is true of the fall in the price of raw materials, which are essential to the Group and which are helping to lower its production costs.
Finally, the Solvay group is appreciated by investors and shareholders for its solid and stable financial structure. This has been rebalanced following the sale of the group's shares in Inovyn and the acquisition of Cytec, a company specializing in the aerospace sector.