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Akzo Nobel NV (AKZA:NA) (AKZOY) PT Lowered to EUR72 at JPMorgan Following Demand Warning

September 27, 2022 5:41 AM EDT
Get Alerts AKZOY Hot Sheet
Price: $23.51 -0.72%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 13 | New: 17
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JPMorgan analyst Chetan Udeshi lowered the price target on Akzo Nobel NV (AKZA:NA) (OTC: AKZOY) to EUR72.00 (from EUR80.00) while maintaining a Neutral rating.

The analyst comments "We had already cut our estimates after the comments from Akzo CEO of weaker volumes at J.P. Morgan CEO Series earlier this month. The update today indicates that volumes in 3Q22 have been even weaker as headwinds from destocking across multiple end markets have been worse. Further, net pricing, while still positive, is expected to be lower than our previous estimates due to headwind on costs from revaluation loss from lower raw material prices. Company expects 4Q to broadly reflect similar trends as in 3Q. While the company will benefit from lower raw material prices in 1H23, the magnitude of net benefit remains uncertain given uncertainty on volumes, stickiness of Akzo's own selling price which has also seen a significant increase over past two years and underlying inflation ex. raw materials. We cut 3Q/4Q/FY22/FY23E adj EBIT by 31%/29%/16%/14% to €185m/€191m/€855m/€1,098m. Our FY22/23E adj EPS is 18%/15% lower at €3.02/€4.18."



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