Deutsche Bank lowers earnings outlook for Arkema

20 November 2008 11:22  [Source: ICIS news]

LONDON (ICIS news)--Deutsche Bank has downgraded its outlook for French specialty chemicals producer Arkema, saying its main end-user markets were too closely related to falling GDP, the bank said on Thursday.

 

Arkema’s 2009 and 2010 earnings per share (EPS) forecasts were reduced by 44%, with the bank now predicted a 35% decline in EPS over 2009.

 

“Reflecting Deutsche Bank’s lowered GDP forecasts we anticipate a 4% decline in volume and price for Arkema in 2009,” said analyst Glynis Johnson.

 

“Increases in capacity in acrylics and PVC through the same period accentuate downside risk to margins,” she added.

 

Deutsche Bank also downgraded its recommendation of Arkema shares to ‘sell’ from ‘hold’ and lowered its target price to €15 from €29.

 

In early tading on Thursday, Arkema’s stock dropped 7.8% from previous close to €13.81 (10.10 GMT).

 

($1 = €0.79)

 

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By: Mark Watts
+44 20 8652 3214

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