LONDON (ShareCast) - (Sharecast News) - Barclays upgraded Croda to 'equalweight' from 'underweight' and hiked the price target to 8,400p from 6,000p, citing a "much-improved" growth outlook, after the speciality chemicals company's results earlier in the week.
The bank said it has underestimated the extent to which Croda is benefitting from the ongoing vaccine boom.

"In addition to its leading lipid offering for the mRNA technology, the legacy adjuvants and excipients businesses have also contributed to a step-change in profitability," it said.

"Our concerns about the sustainability of Pfizer vaccine revenues have not entirely dissipated, but they are now less pronounced given the large number of other projects Croda is working on."

Barclays lifted its 2021 EBIT forecast by 14% to £454m, broadly in line with implied guidance and 10% above pre-results company-compiled consensus.

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