JPMorgan analyst Jeffrey Zekauskas believes PPG Industries (PPG) will bid higher for AkzoNobel (AKZOY) given the accretion potential of the deal. A bid above EUR 90 per share will likely prove attractive to the Akzo shareholder, Zekauskas tells investors in a research note. The analyst believes PPG would be worth in excess of $130 per share following a takeover of Akzo. He continues to view PPG as a good long-term investment and keeps an Overweight rating on the shares with a $110 price target.

Goldman Sachs upgraded AkzoNobel to Neutral from Sell with a price target of $70, up from $66. The company's Q1 adjusted EBITDA topped estimates, but shares fell 7% intraday due to a higher-than-expected operating expense guidance given on the earnings call, the analyst tells investors in a research note. Investors have expressed disappointment in the higher-than-expected costs, stating that more could be done to offset higher wage inflation, though despite the higher opex outlook, the Q2 and FY24 EBITDA guidance ranges given by management still bracket consensus, the firm added.