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Investing.com - JPMorgan has reiterated its Overweight rating and EUR70.00 price target on Akzo Nobel NV (AS:AKZA) (OTC:AKZOY), citing "greater conviction on earnings upgrades" ahead of upcoming results. The company, which has maintained dividend payments for 34 consecutive years and carries a "GOOD" Financial Health score according to InvestingPro, currently offers a 4.36% dividend yield.
The investment bank’s second-quarter and full-year 2025/2026 adjusted EBIT estimates remain 7%/6%/5% above Bloomberg consensus, with adjusted EPS forecasts 5%/4%/6% higher than consensus expectations. With the next earnings report due on July 23, 2025, and trading at a P/E ratio of 21.06, analysis suggests the stock may be slightly undervalued.
JPMorgan points to improving European existing home sales and DIY spending trends through the second quarter, which could boost group volumes beyond its flat year-over-year estimate. The firm notes that each 1% volume growth increment could deliver 4% upside to its quarterly and full-year 2025 forecasts.
A favorable net pricing outlook amid a "still largely benign raw material pricing environment" provides additional support, with data suggesting improving net pricing in China—a region where Akzo has faced pricing challenges over the past year.
The anticipated sale agreement of Akzo’s Indian business is expected to provide flexibility for a potential share buyback, which JPMorgan estimates could reach approximately EUR250 million if sold at current market value, or EUR500 million if Akzo secures a 20% control premium.
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