03 April 2012 12:20 [Source: ICIS news]
LONDON (ICIS)--UBS has raised French specialty chemical firm Arkema’s share price target from €57 to €76, because the company is expected to benefit from better business conditions in 2012, the investment bank said on Tuesday.
UBS said Arkema expects around €75m ($100m) of incremental earnings before interest, tax, depreciation and amortisation (EBITDA) from acquisitions and capacity expansion.
“We think that after the vinyls divestment [announced in November 2011], perceived earnings volatility has significantly reduced, which should trigger multiple re-rating in the medium term,” the bank added.
The bank added that it sees Arkema’s long-term targets as realistic, particularly because the company is already showing signs of resilience in its earnings in 2012.
UBS has maintained its “neutral” rating for Arkema.
($1 = €0.75)
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