STOCKS NEWS EUROPE-Akzo Nobel falls on outlook, valuation

Shares in Akzo Nobel (AKZO.AS) fall 3.7 percent, the top decliner in the DJ Stoxx European Chemical index .SX4P after the company reports better-than-expected third-quarter operating profits due to significant cost savings but warns that markets still remain fragile as sales fall 10 percent.

KBC Securities analyst Wim Hoste downgrades the stock to "hold" from "accumulate", adding that its valuation at 9 times 2009 EV/EBITDA is fair and in line with peers.

Petercam analyst Jan Van den Bossche notes a prolonged volume decline at chemicals created price pressures in the third quarter, adding that U.S. sales at Decorative Paints suffered.

Shares in Akzo Nobel, which rose on Monday, have risen 44 percent this year, compared with a 21 percent increase in the DJ Stoxx European Chemicals index.

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