Index falls as earnings results weigh; pound above $1.33, Bodycote soars
Investing.com - Kepler Cheuvreux initiated coverage on Croda International (LON:CRDA) (OTC:COIHY) with a Reduce rating and a price target of GBP28.40.
The UK-based ingredients maker, which serves beauty, pharmaceutical, and agricultural sectors, has experienced a sharp decline in earnings and margins that diverges from its peers, according to the research firm.
Kepler Cheuvreux noted that high share price volatility adds to the risk profile of the company, while management’s targets appear overly optimistic.
The research firm specifically questioned Croda’s goals of achieving an 80% utilization rate by 2026 and a 20% EBIT margin in 2025, stating these would require volume growth well above market trends.
Kepler Cheuvreux also indicated that consensus estimates for Croda seem too high, while the current valuation fails to account for ongoing forecast downgrades that have occurred since mid-2024.
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