Citi says Arkema is best placed to gain from chemicals recovery in 2025
27/11/2024 09:33
** Citigroup says Europe's diversified chemicals are
"under-earning, under-owned, and trade on cheap valuations",
which limits their downside despite global uncertainties over
demand and tariffs
** "Current demand trends seem insufficient to drive
upgrades while the Trump election win has cast further doubts on
the outlook" - Citi
** However, the sector could see volume recovery in 2025
driven by expected upturns in European agriculture and
construction, it says
** It upgrades Arkema AKE.PA to "buy" from "neutral" with
7% higher PT of EUR 100, vs Tuesday's closing price of EUR 74.05
** Citi says Arkema is best positioned for 2025, backed by
its low macro-dependency compared to peers, high volume recovery
potential and its strong U.S. market exposure
** Out of 18 analysts that cover Arkema, 15 rate the stock
"strong buy" or "buy" and three "hold" - LSEG
** Citi maintains "buy" on Clariant CLN.S , Evonik
EVKn.DE and Wacker WCHG.DE , and opens a pair trade of Arkema
and Syesqo ("neutral") SYENS.BR with a relative preference for
the former
(Reporting by Jakob Van Calster)
((Jakob.vancalster@thomsonreuters.com))