Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com - Rothschild Redburn upgraded Sika AG (SIX:SIKA) (OTC:SKFOF) from Neutral to Buy on Friday, while raising its price target to CHF235.00 from CHF211.00.
The upgrade comes as Rothschild Redburn sees an attractive entry point following a derating of Sika shares due to slowing organic sales that had prompted investor concerns about the company’s growth trajectory. The firm expects growth to return and notes the shares are currently trading at five-year lows.
Rothschild Redburn’s analysis confirms Sika’s resilient outperformance compared to peers, with a proprietary survey of engineers and architects reinforcing the view that Sika’s products are industry-leading. The firm believes Sika’s exposure to European infrastructure stimulus and datacenter growth is underappreciated by the market.
The research firm projects favorable conditions ahead, including advantageous raw materials costs, operational leverage, and efficiency gains that should help Sika deliver margins in the mid-point of its target range. Rothschild Redburn forecasts a 14% earnings per share compound annual growth rate for fiscal years 2025 through 2028.
Sika currently trades at a discount to a basket of high-quality chemicals peers, according to the firm, which sees upside potential as Sika’s premium multiple is restored.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.