Arkema: Morgan Stanley upgrades stock
(CercleFinance.com) - On Thursday Morgan Stanley upgraded Arkema shares from 'equal weight' to 'overweight', with a target price maintained at E104.
The broker said it expected the specialty chemicals group's EBITDA to increase 6.6% in 2025.
According to the analyst, the group should benefit from market share gains in LFP cathodes for electric vehicle batteries, increased production capacity in polymers and the implementation of synergies.
Despite these positive factors, the company's share price currently only reflects expected growth of around 2% next year, MS notes.
The professional also expects the company to generate free cash flow (FCF) of at least E500m by 2025, an amount which - taking into account possible disposals - should enable the management team to consider further share buy-backs.
Copyright (c) 2024 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 broker said it expected the specialty chemicals group's EBITDA to increase 6.6% in 2025.
According to the analyst, the group should benefit from market share gains in LFP cathodes for electric vehicle batteries, increased production capacity in polymers and the implementation of synergies.
Despite these positive factors, the company's share price currently only reflects expected growth of around 2% next year, MS notes.
The professional also expects the company to generate free cash flow (FCF) of at least E500m by 2025, an amount which - taking into account possible disposals - should enable the management team to consider further share buy-backs.
Copyright (c) 2024 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.