S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Thursday, Bernstein analysts initiated coverage on Arkema SA (OTC:ARKAY) (AKE:FP) (OTC:ARKAF) with an Underperform rating and set a price target of EUR53.00. The analysts highlighted concerns about the company’s key business segments, Adhesive Solutions and Coatings Solutions, which represent 55% of the group’s total revenue. These segments are closely linked to the performance of US construction starts excluding infrastructure, which have shown a decline year-to-date in 2025.
The report from Bernstein indicates a pessimistic outlook for the aforementioned segments due to several factors. The analysts pointed out that housing affordability and corporate confidence are on a downward trend, exacerbated by tariffs and geopolitical tensions. Additionally, the potential risks associated with US Dollar foreign exchange were noted as a concern.
Bernstein’s analysts have forecasted organic revenue declines for Arkema (EPA:AKE), which stands in contrast to the consensus view. Their projections leave them 8% and 13% below the consensus estimates for 2025 EBITDA for Adhesive Solutions and Coatings Solutions, respectively. This bearish stance is based on the current economic indicators and market conditions that could negatively impact Arkema’s performance.
The report suggests that while Europe might fare slightly better, it would be from a lower starting point. The analysts’ outlook reflects a broader anticipation of challenging times ahead for sectors reliant on construction activity, especially in the absence of infrastructure projects.
The new coverage and price target by Bernstein provide investors with a perspective on Arkema’s stock, considering the latest industry data and economic trends. The Underperform rating signifies that analysts expect the stock to perform worse than the broader market or its industry peers over a certain period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.