Sika: Continued Upside, But Lowering My Price Target By 10%

  • Sika AG remains a market leader in building chemicals, with strong innovation, recurring revenues, and a robust sustainability focus driving long-term appeal. Despite cyclical risks and slower organic growth, Sika's pricing power, premium brand, and successful acquisitions support continued earnings and margin expansion. Valuation is less attractive than in the past, so I lowered my price target to 265 CHF, but current levels offer a compelling 15%+ annualized upside.