Arkema resumed with a Neutral at Goldman Sachs

Goldman Sachs resumed coverage of Arkema with a Neutral rating and EUR 98 price target as part of a broader research note on European Chemicals. The 2023 destocking-driven sales pressure and margin contraction for much of the sector provides an easy comparable for EU Chemicals over the next 12 months, with the inflection being somewhat captured in the shares, the analyst tells investors in a research note. Arkema has been the only European diversified name in the group to successfully deliver a portfolio upgrade strategy, resulting in through cycle earnings growth and cash generation, and the stock is therefore set for a relatively lackluster 2024 compared to peers that suffered greater earnings pressure in 2023, the firm added.