Arkema Shares Drop 4% Midday Despite New Unit in Singapore

Midday Market Movements

Arkema has dropped 4.01% at midday this Friday, January 16, standing at 51.40 euros after closing on Thursday at 53.55 euros. The stock is dangerously approaching its support threshold at 50.35 euros, testing the 51 euros zone for the second time this week. This decline comes two days after UBS lowered its price target from 64 to 61 euros while maintaining a buy recommendation, while JP Morgan reduced its target from 55 to 50 euros with a neutral opinion. Trading volume remains low with only 0.05% of the capital traded. Despite this setback, the RSI stands at 65, signaling a still dynamic trend without excess, while the stock is slightly below its 50-day moving average of 51.72 euros, reflecting a short-term technical consolidation. Over one year, the French chemist shows an underperformance of 30.59%, although the stock has recovered 2.8% over the last three months. The consensus among analysts remains divided, with targets ranging from 49 euros at Bernstein, underperforming, to 78 euros at Morgan Stanley, which maintains an overweight recommendation.

New Production Unit in Singapore

The group announced on Monday, January 13, the full commissioning of its new Rilsan Clear transparent polyamide production unit at its Singapore site. This investment of approximately 20 million dollars triples the group's global capacity for this material aimed at the eyewear, augmented reality, and consumer electronics markets. This expansion is part of the chemist's development strategy in Asia, aiming to strengthen its proximity to regional demand for specialty materials. Investors are now awaiting the publication of the annual results for 2025, scheduled for February 26.