Berenberg Keeps Sika at Buy After H1 Beat; Price Target, Estimates Up

06:19 AM EDT, 07/29/2026 (MT Newswires) -- Berenberg reiterated its buy rating on Sika (SIKA.SW), with the price target up to 233 francs from 226 francs, as analysts took note of the company's "significantly stronger-than-expected" first-half results. For the six months ended June 30, the specialty chemicals group reported net sales of 5.59 billion francs, ahead of Berenberg's estimate by 3.4% and consensus by 3%, analysts said in a Wednesday research report. Sika also logged a first-half organic growth of 2.9%, which the research firm said is "well ahead" of its 0.4% forecast and the consensus estimate of 0.2%. Following its first-half performance, Sika raised its revenue growth guidance to between 3% and 6% in local currencies, from the prior 1% to 4% range. Berenberg views the outlook upgrade as a sign of improved demand and sustained market share gains in all regions. "These results represent an important turning point in the Sika investment case, in our view. We had been waiting for the negative organic growth seen in Q1 to turn positive in Q2, but Sika has delivered something much stronger. We will happily admit that we have been too cautious on the stock for some time, and this note is a reminder that operational execution remains outstanding," analysts said. "In our view, this marks the beginning of a renewed earnings upgrade cycle and should support further improvements in investor sentiment." Against this backdrop, Berenberg raised its revenue, EBIT and EPS projections for 2026 through 2028.