FY24 guide in line with investor expectations, Q1 better than expected Management set the FY24 EBITDA guide at EUR600-800m. At the midpoint this is 10% below consensus though in line with rebased investor expectations. On Q1, Wacker pointed to EBITDA around the Q4 level (EUR135m) vs consensus at EUR110m. On the segment level, Wacker pointed to sequentially higher EBITDA in Silicones and Polymers and Polysilicon. The key swing factor sequentially is the other line which benefited from a cEUR100m carbon rebate during Q4. Run rate looks supportive and guidance looks well underpinned at the midpoint Taking Q1 as a run rate and adding another carbon rebate for Q4 24, the lower end of Wacker''s new guidance range looks well underpinned. Factoring in IRA credits and receipt of payments for the German pandemic preparedness plan, the mid-point also looks achievable. Crucially, this assumes no recovery in broader chemicals demand. We think risk is skewed towards Wacker achieving EUR800m of EBITDA in FY24 owing to a) significant operating leverage in Silicone where mix and volumes have been weak and b) further mix improvements in Polysilicon. Stacking up relatively well vs other diversifieds Wacker remains one of our preferred recovery plays within European industrial cyclicals. While management guided for negative FCF during FY24, the balance sheet is healthy (1x net debt / EBITDA ex pensions). At c7.8x FY24 EV/EBITDA, Wacker trades in line with the rest of the diversified space, albeit with a de-risked guide and substantial upside potential from both operating leverage and mix improvements. Changes to estimates Our FY24/25 EBITDA (ex assc income) estimates remain relatively unchanged. Our FY24/25 EPS estimates fall due to lower equity income from Siltronic. Our price target increases to EUR122 (from EUR115) due a rollover of our SOTP and higher multiples applied to Chemicals.