We resume coverage of Zotefoams with a BUY recommendation, noting the significant progress that has been made by MuCell over the past eighteen months and a positive outlook for the core Polyolefins business. Capacity expansions in Asia and, more significantly, North America confirm management’s confidence in medium term growth prospects, while currency and, to a lesser extent, raw materials provide a welcome tailwind. Our TP of 336p implies a value for MuCell of c.£40m and an FY17 EV/EBITDA multiple of c.9x for the remainder of the Group.