Arkema SA

AKE: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€423.00	Kfp	Xtmdzxrp

Arkema Delivers Second-Quarter Beat and Raises Guidance Again; Shares Fairly Valued

Rob Hales

Jul 29, 2021

No-moat Arkema reported second-quarter EBITDA of EUR 478 million, up 67% versus 2020 and 21% ahead of the Visible Alpha consensus. Shares traded up 3% on the day. Given ongoing strong demand, Arkema raised guidance for the second time this year. The company now expects 30% growth in specialty materials EBITDA versus 20% previously. This should deliver around EUR 1.4 billion EBITDA for the group. We expect to raise our near-term estimates but don’t expect to make a material change to our EUR 95 fair value estimate. At current levels, the shares look fairly valued.

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