Akzo Nobel: SG no longer a buyer.
(CercleFinance.com) - Société Générale (SG) has downgraded its buy rating on the share of the Dutch chemicals specialist Akzo Nobel, adopting a “hold” rating.
SG has also cut its 12-month target price by 13%, from 92 euros to 80 euros.
This summer Akzo Nobel has suffered - and repulsed - the assault from the US group PPG. However, its defensive strategy includes the confirmation of its targets through to 2020, which SG doubts it will be able to. In particular, the group intends to improve the operating margin of its Paints & Coatings division by 300 basis points. However, a report points out that the fragmented geographical presence of this division is structurally costly. Akzo Nobel also expects to increase its sales by 4% p.a., while this rate was only 1% on average between 2007 and 2016.
All of these details make SG even more doubtful than a number of Akzo Nobel's senior executives, whose CEO, Ton Büchner, followed by its CFO, Maëlys Castella, have had to leave their posts for health reasons.
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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.
SG has also cut its 12-month target price by 13%, from 92 euros to 80 euros.
This summer Akzo Nobel has suffered - and repulsed - the assault from the US group PPG. However, its defensive strategy includes the confirmation of its targets through to 2020, which SG doubts it will be able to. In particular, the group intends to improve the operating margin of its Paints & Coatings division by 300 basis points. However, a report points out that the fragmented geographical presence of this division is structurally costly. Akzo Nobel also expects to increase its sales by 4% p.a., while this rate was only 1% on average between 2007 and 2016.
All of these details make SG even more doubtful than a number of Akzo Nobel's senior executives, whose CEO, Ton Büchner, followed by its CFO, Maëlys Castella, have had to leave their posts for health reasons.
Copyright (c) 2017 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.