05:58 AM EDT, 07/14/2026 (MT Newswires) -- Berenberg revised its forecasts for EMS-Chemie (EMSN.SW) following the Swiss polymer and specialty chemicals company's "good" first-half results. "EBITDA of CHF336m was c4% ahead of Bloomberg consensus estimates, helped by the sequential acceleration from flat organic sales growth in Q1 to close to 10% in Q2. EMS-Chemie's average organic sales growth over 2019-25 has been c2% pa, roughly 1% higher than annual global automotive production growth over the same period," analysts said in a Tuesday note, adding that the group's second-quarter performance "likely benefited, to some extent," from Iran conflict-related pre-buying and high prices. As such, the research firm's full-year sales, EBIT and EPS projections for 2026 to 2028 were increased. Analysts said their higher EPS forecasts reflect volume growth, particularly in sealants and curing EFTEC products, and a "more favorable" polyamide pricing. Still, the stock's sell rating was maintained, while the price target was up to 630 francs from 565 francs. "This is not to claim that EMS-Chemie is solely influenced by polyamide-caprolactam spreads, or to detract from strong H1 2026 earnings. Nevertheless, we believe that the company is at peak margins and has a peak valuation multiple given low levels of growth. Both PA6 spreads and automotive markets (60% of group sales) may face headwinds, especially in late H2," analysts said. "[The] company will in our view struggle to generate enough earnings growth in 2027 to justify its current valuation."

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