Citi Lowers Price Target for Arkema SA Shares, Maintains Neutral Rating | AI-Generated Analysis
Citi has revised its price target for Arkema SA (AKE:FP) shares to EUR93.50, down from EUR110.00, citing limited improvements in trading conditions. The firm maintains a Neutral rating on the stock.
According to a new seasonality analysis, historical data shows that Arkema's earnings in the second half of the year are typically lower than in the first half. This trend, combined with contributions from new projects and cost savings, could result in a 7% decrease in adjusted EBITDA for the second half of 2024.
Market spreads for key product segments, such as PVDF and Acrylics, have also been fluctuating. PVDF margins have declined significantly year-over-year, while Acrylics spreads in Asia have seen an uptick.
Based on these factors, the analyst from Citi suggests that Arkema's full-year 2024 guidance may be adjusted toward the lower end of the range. This projection takes into account the company's typical earnings seasonality and current market conditions.
In conclusion, investors should be cautious about Arkema's performance in the second half of 2024, as the company faces challenges from seasonality and market volatility. It's important to stay informed about these developments to make informed investment decisions.