Sika: Stifel raises its recommendation

(CercleFinance.com) - Stifel has raised its recommendation on Sika from 'hold' to 'buy', with a price target raised from 255 to 270 Swiss francs, after revising its forecasts for the Swiss manufacturer of construction chemicals.


Noting rather positive 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 within reach as early as 2024, two years ahead of schedule.

Stifel adds that its new price target implies 11% upside potential after the recent fall in the share price, bringing current valuation multiples below its five-year average (and the ten-year average with 2026 estimates).

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