Arkema: UBS upgrades stock
(CercleFinance.com) - UBS announced on Monday that it has upgraded Arkema shares from "sell" to "neutral", while raising its target price for them from 80 euros to 105 euros, following the French chemical group's Q4 results.
The analyst justifies this upgrade by two factors: the strength of prices for its specialty materials, whose good resistance has enabled the company to more than offset the decline in its volumes.
The broker also cites a favourable investment outlook, with spending to support the launch of new projects now coming to an end, which it says should boost free cash flow.
UBS therefore says that it has raised its EPS estimates by an average of 22% over the next three years, while mentioning that these estimates remain below the consensus.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst justifies this upgrade by two factors: the strength of prices for its specialty materials, whose good resistance has enabled the company to more than offset the decline in its volumes.
The broker also cites a favourable investment outlook, with spending to support the launch of new projects now coming to an end, which it says should boost free cash flow.
UBS therefore says that it has raised its EPS estimates by an average of 22% over the next three years, while mentioning that these estimates remain below the consensus.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.