Arkema: Credit Suisse confirms rating
(CercleFinance.com) - Credit Suisse maintains its outperform rating on the Arkema stock, along with a target price of 95 euros (10% upside potential).
The analyst believes that Arkema is well on track to improve its portfolio and gradually increase its shareholder returns.
"Proving earnings resiliency of the remaining businesses through the FY20 down cycle remains key to highlighting the underlying quality of the business," Crédit Suisse says.
"Financially, Arkema's balance sheet (FY20F ND/EBITDA 2x including hybrids) provides ample capacity to continue organic growth initiatives, whilst also sustaining headroom for (adhesive) bolton acquisitions".
"Proof of the resilience of the company's earnings throughout the down cycle of the 2020 financial year remains essential to highlight the underlying quality of the company" Credit Suisse says.
"As Arkema gradually shift its business to lower capital intensity (Adhesive type) businesses, we expect group FCF conversion to continue to improve," Credit Suisse adds.
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