Skip to content

Johnson Matthey Shares Fall, Here’s Why Morgan Stanley Downgraded

Sam Boughedda trader
Updated 26 Nov 2021
  • At the time of writing, Johnson Matthey shares are down 1.08% at 2,112p
  • Earlier in the session, they fell as low as 1,959p
  • Morgan Stanley Downgrades stock
  • Deutsche Bank Cuts Price Target 

Shares of chemicals and sustainable technologies company Johnson Matthey have declined Friday after it was downgraded by Morgan Stanley analyst Charles Webb. The company, a FTSE 100 constituent, has fallen in line with other markets this morning following news about a new Covid-19 variant. 

Webb downgraded the stock to Equal Weight from Overweight, lowering its price target to 2,400p, from 3,300p, citing a lack of clear strategic direction as one of the main reasons for the move. The analyst also added that he is concerned with the company's decision to exit battery materials, and the associated reduction in his terminal growth assumption. 

However, in a note to investors, the analyst explained that he still believes the underlying businesses are “undervalued for all intents and purposes,” but a buy case is challenging to make due to Johnson Mathey's new CEO not joining until March of next year.

A positive start to 2021 saw the company's shares hit a high of 3,363p in April. However, it has been downhill since then, with today's fall seeing it touch levels not seen since May 2020. For the year, it is now down 12.8%. 

Elsewhere, Deutsche Bank also adjusted their analysis on Johnson Matthey, with analyst Tim Jones cutting the price target to 2,500p from 2,900p, keeping a Hold rating on the shares. Jones said the company reported a positive H1 but said “strategic uncertainties persist” for the company.

Should You Invest in Johnson Matthey Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.Â