Arkema's Stock Falls 7.63% Over the Week
The stock of the French chemical company experienced a significant correction during the last five trading sessions, closing on Friday at 49.74 euros.
Weekly Performance Analysis
Arkema's stock closed the week at 49.74 euros, down 7.63% from the previous Monday. The decline occurred gradually, with the stock dropping from 53.10 euros at the start of the week to its lowest level on Friday. Trading volumes remained relatively high, ranging from 143,521 shares on Tuesday to 273,155 shares at the beginning of the week, indicating significant market activity. This weekly drop is part of a concerning longer-term trend: since the beginning of the year, the stock has fallen by 42.16%, while the CAC 40 has gained 4.73% over the same period. In the short term, the correction has intensified with a loss of 23.12% over the past three months, illustrating a persistent downward dynamic. It is noteworthy that Arkema's performance this week was significantly below that of the SBF 120, which recorded a limited decline of 1.75%.
Impact of JP Morgan's Downgrade
On Wednesday, October 8, American bank JP Morgan added to the selling pressure by lowering its price target on the stock from 65 to 55 euros, while maintaining a neutral recommendation. This decision made Arkema the biggest loser in the SBF 120 that day, with a decline of 3.21% to 51.20 euros. This movement is partly explained by the reduction in the company's annual financial forecasts at the end of July: EBITDA is now expected to be between 1.3 and 1.4 billion euros, compared to 1.532 billion in 2024, while the current cash flow is expected to be limited to 300 to 400 million euros, far from the initially hoped 600 million. On a more positive note, at the beginning of October, Arkema obtained the TÜV Rheinland certification for its method of calculating the carbon footprint of its products according to ISO standard 14067:2018. This certification, which covers the life cycle 'from cradle to factory gate', is part of the group's strategy to cover 90% of its sales with a life cycle analysis by 2030. This environmental initiative is supported by an internal digital tool developed in parallel, also certified by TÜV Rheinland.
