Croda Shares Upgraded as Price Target Cut – Is the Selloff Overdone?

Shares of Croda International Plc (LON:CRDA) have experienced a volatile period, marked by analyst upgrades alongside price target reductions, revised profit forecasts, and strategic leadership changes. This confluence of factors has left markets questioning whether the recent selloff in the specialty chemicals company is overdone.

Croda's stock currently trades around 2,679 GBp, up 0.56% on the day, although the year-to-date decline of approximately 20%, reflects earlier concerns over various challenges facing the company. 

Recent analyst activity reveals a mixed sentiment. Barclays has just upgraded Croda to ‘Overweight' from ‘Equal Weight' but simultaneously lowered the price target from 3,600 GBp to 3,100 GBp. Barclays' rationale centers on the belief that commoditization concerns surrounding Croda may be exaggerated. The firm also highlights potential positive catalysts stemming from activist pressure on the company.

JPMorgan upgraded Croda's stock from ‘Neutral' to ‘Overweight' in July 2025, setting a price target of 3,600p. This decision was prompted by a significant decline in the company's stock price despite first-half earnings being in line with expectations. JPMorgan views the near 52-week low as a potential value opportunity, suggesting the market's reaction may have been overly negative due to competitive and regulatory uncertainties in Croda's pharmaceutical segment.

The confluence of analyst upgrades, albeit with reduced price targets, alongside strategic leadership appointments, paints a cautiously optimistic picture for Croda International. While challenges persist, particularly within specific business segments, the company's proactive measures and external endorsements suggest potential for recovery and future growth.

The recent price action reflects a market grappling with conflicting signals. The analyst upgrades suggest underlying value, while the profit forecast revisions and price target cuts acknowledge existing headwinds. Whether the selloff is indeed overdone will likely depend on Croda's ability to navigate these challenges and capitalize on the potential catalysts identified by analysts.