Sika: Credit Suisse still a buyer
(CercleFinance.com) - A few days before the Swiss building materials group Sika's CMD on 30 September, Credit Suisse is maintaining its Outperform recommendation on the share, with a target price of 240 Swiss francs.
"We expect management to reiterate its medium-term financial targets and it is highly likely that the guidance for H2 will be maintained too," the broker says, pointing out that management said it exected a much better environment in H2, with increasing sales volumes.
"We are firmly convinced that Sika will achieve sales of nearly SFr10bn as early as 2022. (2) By 2023, management aims to achieve a EBIT margin of 15-18%. We are of the opinion that profitability could be at the upper end of this guidance range by then".
"Management has steadily increased Economic Profits since 2012 and we believe this upward trend will continue, which we do not believe is fully reflected in the share price," Crédit Suisse concludes.
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