AkzoNobel: Berenberg initiates with 'sell' rating

(CercleFinance.com) - Berenberg has initiated its coverage of the Dutch paints maker AkzoNobel with a "sell" rating on Wednesday, which is weighing on its share price on Euronext Amsterdam this morning.


The brokerage firm, which has a target price of 70 euros for the shares, said the market consensus is painting an "unachievable picture."

"The progress that AkzoNobel has made towards its longstanding 2020 margin target of 15% EBIT pre-corporate costs has, in our view, led consensus to become too bullish about the longer-term outlook," Berenberg wrote in a note to clients.

"We believe it is no longer a question of whether the company misses expectations, but rather if top-line or margins will be the source of disappointment," the brokerage added.

The company's share were trading down 0.4% at 81.2 euros after these comments.

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