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.


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