Broker tips: Croda International, Smiths Group

23rd Mar 2026 16:03

(Sharecast News) - Croda International sparked on Monday after Goldman Sachs double-upgraded the shares to 'buy' from 'sell' as it said the speciality chemicals firm's own market-recovery actions have delivered organic sales growth ahead of expectations.

GS noted that Croda has outperformed ingredients peers such as Givaudan, Symrise and DSM-Firmenich.

The bank lifted its FY2026-2027 adjusted EBIT estimates by 13-14%. This reflects "the better 2H25 OSG exit rates, and more optimistic pricing assumptions (in the escalating chemical price environment that is materialising in the context of the Middle East conflict," it said.

Goldman, which has a 3,200p price target on the stock, said adjusted EBIT forecasts for 2026 now sit 6% ahead of expectations.

Citi reiterated its 'buy' rating on Smiths Group as it said the selloff in the share price after results on Friday was overdone.

Shares in Smiths Group slumped on Friday after the engineer reported a "solid" first-half performance but the outlook underwhelmed.

Citi said that following the conference call, it thinks investor debates fall into three areas: the size of the buyback, the Flex-Tek growth outlook, and the Middle East risk in the John Crane segment.

The bank said that with limited changes to consensus likely and an already negative sentiment heading into the numbers, "the share price reaction looks harsh".