Arkema S.A. (EPA:AKE) Just Reported, And Analysts Assigned A €66.94 Price Target

Investors in Arkema S.A. (EPA:AKE) had a good week, as its shares rose 6.6% to close at €52.60 following the release of its third-quarter results. Arkema reported in line with analyst predictions, delivering revenues of €2.2b and statutory earnings per share of €4.49, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Arkema's 15 analysts currently expect revenues in 2026 to be €9.18b, approximately in line with the last 12 months. Per-share earnings are expected to jump 135% to €3.97. In the lead-up to this report, the analysts had been modelling revenues of €9.27b and earnings per share (EPS) of €4.10 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Arkema

The average price target fell 5.2% to €66.94, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Arkema analyst has a price target of €95.00 per share, while the most pessimistic values it at €47.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arkema's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.5% annualised decline to the end of 2026. That is a notable change from historical growth of 2.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.8% annually for the foreseeable future. It's pretty clear that Arkema's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Arkema. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Arkema's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Arkema's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Arkema going out to 2027, and you can see them free on our platform here..

Even so, be aware that Arkema is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.