Sika: Berenberg maintains buy rating, raises TP
(CercleFinance.com) - Berenberg reiterates its "buy" rating on the Sika share, having increased its corresponding target price from 245 Swiss francs to 265 Swiss francs, in a report on chemical players exposed to the construction industry.
"We believe Sika, the world's largest construction chemicals producer, will be the greatest beneficiary from the hefty stimulus measures announced to support an economic recovery in response to the turmoil brought about by COVID-19," the broker says.
"Paints and coatings producers will be less directly affected, but strong demand looks set to continue," Berenberg adds, which considers AkzoNobel and PPG Industries as its preferred plays in the sector.
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