Johnson Matthey share price rallies as Berenberg turns bullish on stock

Analysts point to car battery opportunity ‘for free’ at chemicals group

Johnson Matthey share price rallies as Berenberg turns bullish on stock

Shares in Johnson Matthey (LON:JMAT) have jumped in London in today’s session as Berenberg Bank turned bullish on the group. The analysts argue that the specialty chemicals group’s shares offer an electric car battery ‘opportunity for free,’ Proactive Investors reports.

As of 14:47 GMT, Johnson Matthey share price had added 1.98 percent to 3,226.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent lower at 7,771.26 points. The group’s shares have lost nearly one percent of their value over the past year, as compared with more than a six-percent rise in the Footsie.

Berenberg upbeat on Johnson Matthey

Berenberg lifted its rating on Johnson Matthey from ‘hold’ to ‘buy’ today, hiking its price target on the stock from 3,350p to 3,680p.

“Concerns about falling light-duty diesel market share, latecomer status in batteries and lack of earnings growth have meant that the stock has trodden water since July 2016,” the analysts pointed out in a note, as quoted by Proactive Investors, adding, however, that the specialty chemicals group’s “recently announced share gains in European autocatalysts should facilitate a return to high-single-digit earnings growth, and we believe it is more than credible in batteries”.

The newswire notes that Johnson Matthey had announced last September that it would invest £200 million into the development of high energy battery material this year.

Other analysts on Johnson Matthey

Analysts at Barclays also take a bullish stance on the blue-chip specialty chemicals group, having reiterated their ‘overweight’ rating on the company last month, without specifying a price target on the stock. According to MarketBeat, Johnson Matthey currently has a consensus ‘buy’ rating and an average price target of 3,711.30p.

As of 15:19 GMT, Monday, 15 January, Johnson Matthey PLC share price is 3,225.00p.

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