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Investing.com - JPMorgan upgraded Arkema SA (EPA:AKE) stock rating from underweight to neutral on Wednesday, setting a price target of €65.00.
The upgrade comes despite JPMorgan’s earnings estimates remaining below consensus, with the firm’s adjusted EBITDA and EPS forecasts for 2025 standing 5% and 16% lower than Bloomberg consensus estimates, respectively.
JPMorgan noted that Arkema shares have fallen below its unchanged December 2026 price target of €65 per share, providing "greater valuation support, notwithstanding a still tough earnings backdrop."
The firm acknowledged that management had made cautious comments about current trading at recent conferences, suggesting that buy-side estimates for fiscal year 2025 are likely closer to JPMorgan’s more conservative outlook.
JPMorgan indicated it would need to see "clear evidence - which has thus far been evasive - of superior organic volume/earnings growth" from Arkema’s significant investments and acquisitions, along with "more disciplined capital allocation" before adopting a more constructive view on the stock.
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