Buy signal on Imerys (NK-FR)

We had an Enter Long signal on January 18th 2021, triggered by our system on NK-FR, Imerys, the French mineral specialties Company.

Imerys is a € 3.6Bn market cap and a world leader in mineral specialties for the industry. The Company offers high-added-value business solutions for a wide range of sectors, from process industries to consumer goods or construction products.

The activity is organized around 2 areas :
1/ Performance Minerals: the segment serve the plastics, paint and coating, filtration, ceramic materials, renewable energy, paper and board industries;
2/ Materials and High Temperature Solutions: the segment will bring together two business areas, High Temperature Solutions and Refractories, Abrasives & Construction, and will serve the refractories, foundry, metals, abrasives and building chemistry markets.

Revenues are well balanced between Europe/Middle East/Africa (48%), Americas (29%) and Asia/Pacific (23%).

After 2 difficult years linked to the asbestos then Covid-19 issues, Imerys is expected to recover swiftly from 2021. The company is also reshaping its portfolio via M&A and possible divestment of its paper activities. The operating margin is expected to reach again double digits at the end of 2021.

Short term catalyst: Portfolio reshaping, volumes recovery.

This signal looks consistent with the Major Bullish Trend in the European construction sector.