Sika: Stifel upgrades stock, raises TP
(CercleFinance.com) - Stifel has upgraded Sika shares from 'hold' to 'buy', with a target price raised from 255 CHF to 270 CHF, after revising its forecasts for the Swiss manufacturer of construction chemicals.
Noting fairly upbeat market comments from management, the broker expects Sika to return to organic growth of 6.2% in 2025, and believes that an EBITDA margin of 20% is credible as early as 2024, two years ahead of schedule.
Stifel adds that its new target price implies 11% upside potential after the recent fall in the share price, bringing current valuation multiples below their five-year average (and the ten-year average with 2026 estimates).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Noting fairly upbeat market comments from management, the broker expects Sika to return to organic growth of 6.2% in 2025, and believes that an EBITDA margin of 20% is credible as early as 2024, two years ahead of schedule.
Stifel adds that its new target price implies 11% upside potential after the recent fall in the share price, bringing current valuation multiples below their five-year average (and the ten-year average with 2026 estimates).
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.