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(ICIS) -- Investment bank Credit Suisse
has initiated coverage of Dutch-based AkzoNobel with an “underperform” rating
and a ?39.50/share ($54.86/share) target price, it said on Thursday.
The
specialty chemicals and paints maker’s earnings before interest and tax (EBIT)
for 2012 are expected to be below market forecasts, on the back of sustained
end-market weakness in residential housing across Europe and the US, the
analysts added.
“AkzoNobel is exposed to residential construction markets across Europe,
Americas, and Asia. AkzoNobel volumes are therefore heavily dependent on
residential activity levels in these markets,” analysts said.
Credit Suisse said that European and North American residential activity
is near 50-year lows.
The analysts forecast that European construction
markets are likely to deteriorate further before getting better, due to above
average unemployment levels, low consumer confidence and the inability to access
finance, which will place ongoing pressure upon AkzoNobel’s
volumes.
mrcplast.com
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