BUZZ-Barclays double-downgrades Sika on lack of growth catalyst in 2025

Shares in Sika SIKA.S slip around 1.7% after Barclays double-downgrades the Swiss industrial and construction chemicals company to "underweight" from "overweight", citing lack of growth catalyst in 2025

The broker cites Europe, China, auto demand, US comps as main drivers of growth weakness in recent months, saying it does not expect major improvement at least through H1 2025

MBCC synergies remain the key factor for Sika to deliver higher margins in 2025, Barclays notes

Although there have been some signs of progress, Barclays expects synergy gains to take time due to very low starting point of MBCC standalone compared to Sika, and the slow economic environment

The brokerage says Sika's 2025-2026 consensus expectations for revenue and EDITDA remain "too high"

"Sika is the only company for which we see such earnings risk at this stage," the broker says

Still, Barclays sees solid growth potential for the company in mid-term

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))