Akzo Nobel

JPMorgan has reinitiated coverage of Akzo Nobel at overweight with a €72 price target. The bank views the planned merger with Axalta as a sensible consolidation step in a market with little growth and expects significant synergies for both paint and coatings manufacturers. Even if the cost synergies prove overly optimistic, only a small part of the potential merger benefits has so far been priced into the stock. » More on finanzen.net

Akzo Nobel reported adjusted EBITDA of €398m in the second quarter, up 5% and slightly above consensus estimates, on sales of €2.59bn, which — after the sale of the liquid coatings business in India — largely met expectations. Management raised the full-year forecast to at least €1.47bn adjusted EBITDA, exceeding previous market expectations. CEO Greg Poux-Guillaume attributed the improvement to price discipline and cost efficiency and confirmed the planned merger with Axalta is on track to complete by end-2026/early 2027; a shareholder vote is scheduled for 5 August. The share rose about 1.3% intraday, trading up to €59. » More on de.investing.com

A takeover offer from Nippon Paint of €7.5 billion for the Decorative Paints division briefly pushed Akzo Nobel’s stock higher, but the supervisory board rejected the sale. Jefferies sees the offer as confirmation of the division’s substantial value; Bernstein criticised the price as too low and pointed to constraints from the ongoing merger with Axalta and potential financing issues for a higher bid. Trader reactions caused volatile share gains; analysts say a sale could still be possible later in the decade. » More on de.investing.com