We downgrade from BUY to HOLD this morning ahead of tomorrow’s trading update, having withdrawn Victrex from our Best Ideas list at the start of this month. We are long term supporters of Victrex, but too many risks have emerged this year for us to retain our conviction in the BUY case on a 12 month view. The Solvay capacity expansion is a bit of a black swan and we worry that things could get worse before they get better for Oilfield. Recent euro weakness also means that currency headwinds could persist into FY16. We therefore now see some downside risk to forecasts, which drives our change in stance.
