Arkema resumed with Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Arkema to Equal Weight from Underweight with a EUR 105 price target after resuming coverage of the name. The analyst sees a balanced risk/reward at current share levels. The analyst expects 2024 to be another challenging year for the European chemicals sector, saying weak exit rates from 2023, material oversupply and structural cost curve challenges in Europe dampen a recovery. “While we are near the trough, aggregate expectations are too high, limiting the base case upside in most equities,” the analyst tells investors in a research note.