Analysts have trimmed Arkema’s price target to €76.06, reflecting heightened caution around 2025 guidance cuts, persistent margin pressure, and weaker end-market demand, despite some confidence in the company’s long-term positioning.
Analyst Commentary
- Bearish analysts cite increased risk of significant 2025 guidance cuts, particularly ahead of Q2 results.
- Bullish analysts adjust price targets downward in response to a more challenging macroeconomic environment impacting demand.
- Margin pressure across divisions, especially in specialty materials, prompts more conservative future estimates.
- Cautious outlook on volume recovery due to lingering weakness in key end-markets such as construction and automotive.
- Some analysts maintain constructive ratings, reflecting confidence in Arkema’s long-term positioning despite near-term headwinds.
What's in the News
- Arkema earned ISCC PLUS certification for its North Kansas City site, making all its global polyester powder resin facilities certified, supporting sustainable solutions for coatings across multiple industries.
- The company started up a 15 kt Forane 1233zd production unit in Calvert City, producing a non-ozone depleting, low-GWP foam-blowing agent for efficient building insulation and thermal management, supporting its sustainability commitments.
- Arkema is constructing a new Rilsan® Clear transparent polyamide unit in Singapore, expected operational in early 2026, tripling global production, enhancing recyclability, and strengthening regional supply chains.
Valuation Changes
Summary of Valuation Changes for Arkema
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €77.06 to €76.06.
- The Future P/E for Arkema has risen from 16.45x to 17.97x.
- The Net Profit Margin for Arkema has fallen from 4.52% to 4.12%.
Disclaimer
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