Fair Value: €26.0 – – – – Rating: Strong Buy
First expansion step: Renewable Ethyl Acetate
CropEnergies has decided to invest in a renewable ethyl acetate plant, which could add EUR91m in sales and EUR10m in EBIT by FY2027/28. This is the first investment decision in a row of projects that deliver on the company’s “Innovation from biomass” strategy and which should drive the company to EUR1.8bn in sales and EUR325m in EBIT. This expansion should lead to a revaluation of the share to EUR26. With more news ahead, we reiterate our Strong Buy rating on the stock.