AkzoNobel: stock falls with broker downgrade
(CercleFinance.com) - AkzoNobel shares are down 1% in Amsterdam today, with Jefferies downgrading them from "buy" to "hold", while reducing its corresponding target price from E84 to E72 for the manufacturer of paints and coatings.
The broker acknowledges that AkzoNobel and its peers have demonstrated pricing power throughout an inflationary cycle, and believes that the pricing tailwind should continue to drive profits through H1 2024 (at least).
"However, in the absence of any volume improvement (not expected per our sector note), other levers for earnings growth (cost-cutting) are unlikely to provide material earnings benefits until 26/27".
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