We highlight the following risks to our valuation and target price. As with most chemical companies, Akzo Nobel is subject to risks from changes in the economic outlook, FX environment, and demand. Furthermore, aggregate demand could be negatively impacted by tariffs and trade wars which could result in substantially lower volumes than currently forecasts. Given the continued consolidation in the coatings industry, we note M&A as a further potential risk. If the impact on the company from any of these factors proves to be greater or less than we anticipate, the stock will either likely have difficulty achieving our financial estimates and target price or could materially outperform our target.
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