Friday, 7 November 2025 Reading time : 3 minutes

Corporate earnings are currently setting the pace on the Swiss stock market. Not all companies are impressing investors with their performance reports. Among the losers are food giant Nestlé and construction chemicals manufacturer Sika. Both companies presented results that were roughly in line with market expectations (Sika) or even better than expected (Nestlé). Nevertheless, their shares are under pressure. 

In mid-October, Nestlé's new CEO, Philipp Navratil, presented unexpectedly good quarterly results and announced a cost-cutting programme. He also confirmed the guidance for the full year, taking into account the 39% US tariffs on Swiss goods, as reported by Reuters. The shares rose sharply as a result, but the gains quickly evaporated. It seems that the new boss still has to earn the trust of the markets. Stock analysts, on the other hand, are confident and believe that the shares will rise to around CHF 87 within the next twelve months (currently CHF 78.89, as of the closing on 6 November 2025), according to Bloomberg.

In contrast, the construction chemicals group Sika has had a difficult year so far. The strong Swiss franc and weak Chinese construction industry have led to a decline in sales over the first nine months of 2025, reports Reuters. Given the challenging market conditions, Sika has revised its medium-term forecasts downwards and introduced various cost-cutting measures to regain success. 

Although the decline in sales was anticipated by financial markets, the shares, already trading at a multi-year low, lost significant ground once again. Scepticism currently seems to prevail as to whether the measures decided upon are actually suitable for achieving the newly set targets. However, a look at analysts' estimates shows that the shares could still have room for growth. According to Bloomberg, the twelve-month price target is CHF 211.23 (currently CHF 152.35, as of the closing on 6 November 2025).

The research of Zürcher Kantonalbank rates both stocks as overweight. 

For investors who believe that both shares will generate moderate gains from their current price levels, but who do not wish to invest directly, the Reverse Convertible on Nestlé and Sika (Valor: 149 282 945) could be an attractive option. This six-month product offers a 12% p.a. coupon and has a strike price of 95%.

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