AlphaValue/Baader Europe Lifts Sika Price Target on Recovery Prospects; EPS Projections Cut on China Headwind

01:34 AM EST, 12/16/2025 (MT Newswires) -- Sika (SIKA.SW) is "poised for recovery," despite continued near-term headwinds from the Chinese construction market, AlphaValue/Baader Europe said while raising the stock's target price to 181 francs from 172 francs. Analysts on Monday affirmed the Swiss specialty chemicals company's add rating, noting "attractive" medium- to long-term optionality and the potential for a share buyback program. "From a macro perspective, the stock could benefit from an improving rate environment, notably if the [US Federal Reserve] proceeds with rate cuts in 2026," according to the research firm. "This would support Sika's North American operations, potentially unlocking additional growth across infrastructure spending and the expanding data centre industry, in which Sika's sales remain low, but should gradually increase. The group is also well positioned to benefit from the German stimulus, as approximately 70% of Sika's German sales are exposed to refurbishment-related activities." Meanwhile, analysts reduced their 2025 and 2026 EPS estimates by 13% and 8%, respectively, to reflect forecasts of lower profitability due to the slower-than-expected normalization of the construction market in China and higher taxes.