RBC Tweaks Model for Sika on Q2 Results, Guidance Update; Sector Perform Rating Kept

07:08 AM EDT, 07/29/2026 (MT Newswires) -- RBC Capital Markets revised its model for Sika (SIKA.SW), adjusting its price target and earnings estimates to account for the specialty chemicals company's second-quarter performance and updated full-year 2026 outlook. "Sika's Q2'26 results highlighted the strength of the Group's market outperformance model, and provided encouraging signs of growth across [Europe, the Middle East, and Africa] and Americas end-markets, with meaningful organic growth beats across all regions (particularly EMEA and the Americas), and strong progress on pricing," according to a Tuesday note. "Of Sika's 5.7% Q2'26 organic growth, management noted that broadly half was driven through pricing action (vs flat in Q1'26). Pricing actions initiated in Q1 appear to be providing meaningful organic growth tailwinds, alongside greenshoots of demand in Europe. A degree of this will be through transportation cost surcharges which are likely to be removed once costs come back down - in any case, evidence that price rises are 'sticking' is encouraging," analysts added. Sika posted half-year sales growth of 4% in local currencies. Reported sales for the period reached 5.59 billion, down 1.5% in Swiss francs. For full-year 2026, the company now forecasts sales growth in local currencies of between 3% and 6%, up from the previous guidance of 1% to 4%. Against this backdrop, the research firm increased its full-year 2026 revenue estimate by 3.4% to 11.51 billion francs and raised the revenue forecasts for 2027 and 2028. RBC also lifted the sector perform-rated stock's price target to 178 francs from 167 francs.