SIKA: It's not rolling yet!

The shares of the construction chemicals group SIKA are not really getting off the ground. Although the share price rose slightly above CHF 220 several times, it then fell back again each time. SIKA would be predestined to benefit from several mega-trends and the Group has just completed a record year. The company is benefiting from opportunities in the US market, the electrification of vehicles and the new sustainability requirements in the construction industry. The construction chemicals group sells products that you don't usually see: Membranes that protect building roofs from rain, storms and hail, additives that flow into concrete, or adhesives for sealing in cars, among other things. The Swiss company based in Baar has become an integral part of the construction and automotive industries! Today, SIKA is represented in 102 countries with more than 34,000 employees. On the American continent, particularly in the USA, it has been able to significantly increase its turnover. The "taxes" that US President Donald Trump wants to (and will) levy on foreign goods imported into the USA are unlikely to have a significant impact on SIKA. SIKA operates in a very decentralized manner, with local branches that have a high degree of autonomy. The largest is the one in the USA, which is almost 100% supplied by US supply chains. It produces in the USA for the USA, and with raw materials that are primarily sourced in the USA!

SIKA benefits from the global construction potential. Almost half of this is located in Asia, which is a very promising region for SIKA. Germany's infrastructure program worth several EUR 100 billion should also be beneficial. Or the possible reconstruction of Ukraine and the Gaza Strip. All of this together, including the core business, shows the enormous potential of the SIKA share! We are taking the opportunity to raise our buy limit on the neglected share from CHF 183 to CHF 210, valid until the end of September. Target price remains at CHF 240 for the time being