First Read: Sika "Best of Europe Virtual Conference 2026 - Feedback" (Buy)

研报英文原文证据摘录

First Read: Sika "Best of Europe Virtual Conference 2026 - Feedback" (Buy)

Forecast returns

Forecast price appreciation 54.2%

Forecast dividend yield 2.7%

Forecast stock return 56.9%

Market return assumption 5.2%

Forecast excess return 51.7%

Company Description

Sika is a diversified group, geared to construction (construction division: c80% of sales) and

transportation (industry division: c20%, mainly automotive). Sika generates c40% of its

construction turnover in infrastructure and c50% in renovation/modernisation (c30%

residential, c70% non-residential). Within construction, the concrete industry is Sika's most

important end market (c25%), followed by roofing. The industry division's main activities

include the bonding of car windows, and, increasingly, the replacement of mechanical

fastening techniques by bonding. Auto OEM sales account for c10% of group sales.

Valuation Method and Risk Statement

Sika's industry division is geared to the automotive and transportation industry. A significant

downturn in these industries would represent a risk for Sika. Furthermore, a general

downturn of the economy and the construction output figures could weigh on Sika's share

price. Sika's sales exposure to countries outside of Switzerland represents a currency risk, and

the company's raw material costs are exposed to oil price fluctuations. Sika’s Construction

division has a 40% exposure to infrastructure and commercial each. In case governments are

going to implement cost saving (austerity) programs as discussed, this could have a negative

impact on Sika’s infrastructure business. Both markets in which Sika operates – construction

and industry – are cyclical. If both cycles coincided on a negative downturn, negative effects

would be amplified.