AkzoNobel: UBS still a buyer
(CercleFinance.com) - AkzoNobel has provided a trading update for Q3.
The group expects adjusted operating profit of 195 to 215 million euros at the end of the current quarter. This is actually well below the consensus, with analysts looking for operating profit of 288 million euros.
UBS estimates that de-stocking will lead to lower volumes in Q3 2022, although prices will continue to offset raw material inflation.
Following this business update, UBS reiterates its buy recommendation on the stock, along with its target price of 85 euros (current price almost 56 euros, -0.7%).
"Decline in underlying volumes and persistently high costs are the main risk going forward. But pricing is a positive. But pricing-raws remains positive," UBS says.
According to the group, current trends affecting demand are expected to continue in the fourth quarter, although they should be offset by initiatives to reduce costs and increase prices.
This morning the share seems to be painting Amsterdam red - in relative terms - it is down just 0.5%, while the general index is down over 2%.
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