JPM upgrades Arkema to 'neutral' on valuation support

Arkema SA

25/06/2025 06:59

** J.P. Morgan upgrades French specialty chemicals maker Arkema AKE.PA to "neutral" from "underweight", citing valuation support as shares fall below its price target

** It keeps its PT unchanged at 65 euros; Arkema's shares are down 16.5% YTD and closed at 61.45 euros on Tuesday

** "Clear evidence of superior organic volume and earnings growth... would be the key reasons for us to turn more constructive," the broker says

** It says Arkema's adhesives organic revenue performance continues to lag peers, only partly due to business mix differences

** JPM expects Arkema's organic sales to decline 4% year-on-year in Q2

** It notes that despite a tough earnings backdrop, the current share price offers "attractive" valuation

** Out of 18 analysts that cover Arkema, 13 rate the stock "strong buy" or "buy", ​three rate it "hold" and two​ rate it "strong sell" or "sell" - LSEG data

(Reporting by Dimitri Rhodes)

((Dimitri.rhodes@thomsonreuters.com))