Sika registered a solid H1 19 but this was mainly thanks to acquisitions as the organic growth was at its lowest level over the last three H1s, with +3.1% vs +6.8% in H1 18 and +5.7% in H1 17. But the disappointing fact is the change in wording about the guidance, which is somewhat a negative. Overall, we will increase the target price by 5-10% in order to switch back to a Buy recommendation, as Sika remains our top pick.
26 Jul 2019
H1 19: satisfying H1 but guidance somewhat revised downwards
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H1 19: satisfying H1 but guidance somewhat revised downwards
Sika registered a solid H1 19 but this was mainly thanks to acquisitions as the organic growth was at its lowest level over the last three H1s, with +3.1% vs +6.8% in H1 18 and +5.7% in H1 17. But the disappointing fact is the change in wording about the guidance, which is somewhat a negative. Overall, we will increase the target price by 5-10% in order to switch back to a Buy recommendation, as Sika remains our top pick.