Barclays bearish on Sika stock as weak market trends and MBCC integration weigh on outlook

Published 07/01/2025, 09:54
Barclays bearish on Sika stock as weak market trends and MBCC integration weigh on outlook

On Tuesday, Barclays (LON:BARC) analysts announced a downgrade of Sika AG (SIX:SIKA:SW) (OTC: SKFOF) stock from Overweight to Underweight, significantly reducing the price target from CHF330.00 to CHF215.00. The downgrade reflects the analysts' view that while downside risk is relatively limited, the stock is not expected to outperform in the coming 12 months.

The analysts at Barclays highlighted that Sika AG's growth potential remains solid for the mid-term, but they do not foresee an acceleration in growth for the company in 2025. They pointed to several factors that have weakened growth in recent months, including market conditions in Europe, China, and the automotive sector, as well as challenging comparisons in the United States.

Barclays also noted that these market challenges indirectly affect the company's ability to penetrate new markets. The analysts expressed that the relative outperformance in Europe fell slightly short of their expectations and that they do not anticipate a significant re-acceleration of growth until the integration of MBCC Group is fully realized.

The report further mentioned that while these factors are not new, consensus expectations are still overly optimistic. Barclays' sales estimates for 2025-2026 are moderately below the Bloomberg consensus, indicating a more cautious outlook on the company's revenue trajectory.

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