Solvay (SOLB) Stock Jumps 3% as Deutsche Bank Spots Rare Earth Value

TLDR

• Solvay stock rose 2.9% to €26.50 after Deutsche Bank upgraded it to Hold from Sell
• Deutsche Bank analyst Tristan Lamotte raised the price target to €26 from €23.50
• Rare earth exposure could add up to 13%, or €100 million, to Solvay’s EBITDA
• Solvay signed a non-binding letter of intent with Viridis Mining to source rare earth feedstocks from Brazil
• Deutsche Bank still flags risks including potential guidance cuts, weak soda ash markets, and free cash flow pressure

Solvay stock climbed 2.9% to €26.50 on Thursday, driven by a Deutsche Bank rating upgrade and growing investor interest in the company’s rare earth business.

Solvay S.A., SLVYY

Deutsche Bank analyst Tristan Lamotte lifted his rating on the Belgian chemicals maker to Hold from Sell, raising his price target to €26 from €23.50. The move came after Solvay’s stock had underperformed the SX4P European chemicals index by 10% since the bank’s previous downgrade in November 2025, bringing the valuation back to a more balanced level.

The stock currently trades at 7.5 times 2026 estimated EV/EBITDA. That’s a premium to peers, but Deutsche Bank now considers it justified given the rare earth upside.

Deutsche Bank said Solvay’s rare earth processing capabilities had been undervalued by the market. The bank estimates rare earths could add up to 13%, or initially €100 million, to EBITDA. A positive outcome on a rare earth project, if it materialises, could push the stock higher.

Rare Earth Deal Adds to the Story

Earlier this month, Solvay signed a non-binding letter of intent with Viridis Mining and Minerals to secure rare earth feedstocks from Brazil. The material would feed into Solvay’s La Rochelle separation plant in France, with commercial production targeted for 2028.

Solvay has set a target to supply 30% of the European market for magnet-grade light and heavy rare earths by 2030. The Viridis deal is a step toward building out that supply chain from outside China.

Caution Still on the Table

Despite the upgrade, Deutsche Bank is not calling this a buy. The bank flagged several risks that continue to weigh on the business.

Guidance cuts are possible. Soda ash markets remain under pressure. Construction end-markets are soft. Free cash flow is also stretched.

The upgrade reflects a more balanced risk-reward after the stock’s underperformance, not a change in the outlook for Solvay’s core operations.

Lamotte noted the SX4P index had gained 10% over the same period since the November 2025 downgrade, while Solvay lagged. At the time of that downgrade, the stock was trading at €27.80. It now sits at €26.50.

Deutsche Bank’s new €26 price target sits just below the current trading level, keeping the call firmly in neutral territory.

The rare earth letter of intent with Viridis Mining remains non-binding, and commercial production at La Rochelle is still two years away.

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