Canaccord reiterates 'sell' recommendation on Croda

7th Nov 2014 10:27

Specialty chemicals manufacturer Croda has multiple positive features, yet even after the recent share-price underperformance those are more than fully reflected in the share price, Canadian broker Canaccord Genuity said in a research report sent to clients.Additionally, it expects the firm's future growth rates to disappoint, with negative implications for the stock price.What are those features? A sound product offering, technologies and market positioning, said analyst Paul Satchell.In particular, Satchell pointed out the "surprisingly high" negative impact from foreign exchange translation, which at -7.3% shaved 3.3% from the top-line.Even so, he admitted the "directionally confident" outlook from the company, although he added that the outlook was"vague".Canaccord thus maintained its 'sell' recommendation and 1,950p target price on the shares.Nevertheless, the stock was up 4.6% at 2,359p by 11:04 on Friday.