Sika: UBS changes to 'sell' and lowers target
(CercleFinance.com) - UBS downgrades its recommendation on Sika from 'neutral' to 'sell' with a target price brought down from 140 to 135 Swiss francs, which implies a downside of 16% for the share of the Swiss specialty chemicals group.
“Sika shares now discount an ROIC of 20%+ which is challenging; If earnings fail to grow much faster than anticipated, shares are likely to de-rate”, forecasts the broker.
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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.
“Sika shares now discount an ROIC of 20%+ which is challenging; If earnings fail to grow much faster than anticipated, shares are likely to de-rate”, forecasts the broker.
Copyright (c) 2019 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.