Deutsche Bank cuts Arkema price target to EUR102, maintains Buy

Published 06/03/2025, 14:06
Deutsche Bank cuts Arkema price target to EUR102, maintains Buy

On Thursday, Deutsche Bank (ETR:DBKGn) adjusted its price target on Arkema SA (OTC:ARKAY) (AKE:FP) (OTC: ARKAF) shares, reducing it to €102.00 from the previous €105.00, while retaining a Buy rating on the stock. The revision follows a series of meetings with Arkema (EPA:AKE)’s CEO, Thierry Le Hénaff, and CFO, Marie-José Donsion, which provided insights into the company’s strategy and financial outlook.

The discussions with Arkema’s top executives revealed that the company’s diverse portfolio, spread across various products and geographical regions, along with its recent investments aimed at expanding into high-growth areas and value-added applications, are expected to bolster its operational performance despite the current economic headwinds.

The financial metrics highlighted by Deutsche Bank underscore the perceived undervaluation of Arkema’s shares. The bank’s analysts pointed out that the stock is trading at an attractive 8.7 times the estimated 2025 earnings per share and 5.2 times the enterprise value to earnings before interest, taxes, depreciation, and amortization ratio. Additionally, they projected a 10% free cash flow yield for the year 2025, suggesting a strong potential for shareholder returns.

Deutsche Bank’s stance on Arkema is underpinned by the belief that the market has yet to fully appreciate the company’s financial strengths and strategic initiatives, which could drive its growth and performance in the forthcoming years.

Arkema, with its focus on specialty chemicals and advanced materials, continues to navigate the complex global market landscape, leveraging its diversified approach to maintain resilience and capitalize on emerging opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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