SXYAY - Sika Flexing Its Strengths And The Street Has Taken Notice

• Sika hasn't been immune to the pandemic, but non-residential and residential building activity have held up well, and management sounds bullish on second-half rebound growth prospects.
• Driving increased product penetration with construction projects is a focus of management, and cross-selling will play a significant role.
• Developing more indirect distribution is another priority; sales through distributors offer better EBIT margins and can expand the company's business with smaller customers.
• Sika is a strong play on green building retrofits, with a host of products that address building energy and emission footprints.
• Always a well-run company, the prospects of green retrofit tailwinds and further margin leverage have pushed the shares to a new level of valuation multiples.

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