Arkema: Oddo raises target price
(CercleFinance.com) - Oddo believes that Arkema has not published particularly surprising Q3 2019 results in comparison with its EBITDA expectations.
However, the group returned to growth in reported terms (+3% vs. -5% in Q2 and -3% in Q1).
The main difficulties are still found in fluorinated gases (penalised by illegal imports in Europe) and low volumes in advanced materials (demand under pressure in the automotive, electronics and oil/gas) sectors, the broker says.
Updating its 3-year forecast models results in a slight reduction in the broker's EBITDA estimates for Arkema (-1%).
However, it continues to prefer the French chemist Arkema (Buy rating) to the Belgian chemist Solvay (Neutral rating), mainly for valuation reasons (reduction of discount in terms of multiples) and value creation.
The broker has raised its target price for the share to 110 euros, against 100 euros previously.
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