Arkema: Stifel upgrades stock

(CercleFinance.com) - Stifel has upgraded its rating on Arkema shares to "buy," having increased its corresponding target price from 109 euros to 116 euros, based on higher earnings estimates; "Our upgrade reflects the anticipation of ongoing strategic progress and confidence in 2024 targets".


While the company's forecast for 2021 implies a clean EBITDA of around 1.2 billion euros, the broker estimates it at 1.34 billion, particularly thanks to improved margins in acrylic acid and a strong rebound in demand for technical polymers.

The broker sees that Arkema is trading at an "attractive valuation given its mediocre performance since the beginning of the year" and believes that "sentiment should improve with evidence of higher margins in adhesives and optimisation of the portfolio in 2021".


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