Berenberg on Wednesday cut its recommendation on Arkema to 'hold' from 'buy', with a price target reduced from 120 to 96 euros, saying it sees better opportunities elsewhere in the sector.

In a note, the analyst acknowledges that the chemical group's operating performance in 2023 was among the most resilient in the European market, a result all the more remarkable in his view given that the year was not an easy one for the industry.

According to the intermediary, however, the stock offers 'limited' potential for outperformance in the short term, given that the consensus is for adjusted Ebitda of €1.6 billion for 2024, a figure well in line with the group's forecasts of between €1.5 and €1.7 billion.

Within the sector, Berenberg says it prefers Syensqo, whose share price is based on a much less ambitious outlook, which is currently below market consensus.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.