Croda hit by downgrade despite profit increase
Barclays Capital recently downgraded Croda from ‘Equal Weight’ to ‘Underweight’
Specialty chemicals company Croda has reported a 6% climb in profits for the last six months, thanks in part to a surge from its consumer care operation. Despite this, Barclays Capital recently downgraded Croda from ‘Equal Weight’ to ‘Underweight’.
The specialty chemicals player has received a raft of analyst verdicts recently. Nine analysts have issued a ‘Hold’ rating while six issued a ‘Buy’. Croda, though, has been a storming success for investors in the teeth of a brutal recession.
At the end of 2008, Croda shares were worth around 380p. They have now soared to 2,571p, more than a 550% increase, with dividends and earnings rising sharply. The company is also increasingly switching attention to natural raw materials, a trend likely to increase over time.
Commenting on its latest figures, Chairman Martin Flower said: “Although the challenging trading environment has inevitably held back certain parts of the business, our leading positions in niche markets and steadfast commitment to innovation are reflected in improved profits and margins in all divisions.”
