-- Berenberg maintained its buy rating on AkzoNobel (AKZA.AS), saying the paint and coatings company's shares present a "good way to invest" in the potential de-escalation of the conflict in Iran.
"Paint and coatings names usually benefit when oil prices are lower, owing to the ability to expand margins with lower raw material costs. Every USD10/barrel share decline in oil price has historically been associated with a EUR3/share increase in AkzoNobel's share price. Oil futures curves foresee a USD20/barrel decline over the next two years to cUSD75/barrel. We remain Buy-rated, but trim our price target to EUR66 (from EUR75)," analysts said in a Tuesday note.
The research firm also highlighted the ongoing progress in the Dutch company's merger with US-based paint manufacturer Axalta Coating Systems, with analysts expecting the latter to help AkzoNobel with its cost management, an area the company has "struggled" with at times.
On the financials side, analysts reduced their EPS estimates for 2026 through 2028 to account for "modestly lower" volumes, particularly in Europe. Conversely, Berenberg raised its sales forecast for AkzoNobel over the same three-year period.