Johnson Matthey Shares Hit Multi-Year High on Analyst Upgrade

Johnson Matthey shares (LON: JMAT) are on the move today, reaching a multi-year high of 2,360p as positive analyst sentiment gave bulls something to rally behind. The JMAT share price climbed 6.32% this morning, 71.28% up over the past year as the 2,200 resistance gave way.

The catalyst for today's move was an upgrade from Berenberg analyst Sebastian Bray, who revised Johnson Matthey's rating from ‘Hold' to ‘Buy.' This upgrade was accompanied by a raised price target of 2,550 GBp, a substantial increase from the previous target of 2,050 GBp.

The firm highlighted Johnson Matthey as a standout within the European chemicals sector, noting its potential for upward revisions to consensus estimates, in contrast to prevailing trends. This assessment suggests a belief in the company's capacity to outperform its peers and deliver stronger-than-expected financial results.

The market’s positive reaction to the Berenberg upgrade propelled Johnson Matthey's share price to a high of 2,360p, a level not seen in several years. At the time of writing, the shares are trading around 2,322, up 6.32% on the day. This price action underscores the market's endorsement of the analyst's bullish outlook and reflects growing confidence in the company's intrinsic value.

This recent upgrade follows a similar positive assessment from JPMorgan in late November 2025, when the bank upgraded Johnson Matthey to ‘Overweight' from ‘Neutral.' JPMorgan's decision was underpinned by favorable metal prices and the company's reaffirmed fiscal 2026 Clean Air margin guidance of 14-15%. The bank also increased its adjusted EBIT estimates for the company's continuing operations by 11%, 6%, and 6% for fiscal years 2026, 2027, and 2028, respectively, signaling expectations of sustained earnings growth.

Contributing to the positive sentiment surrounding Johnson Matthey was the strategic divestment of its Catalyst Technologies division to Honeywell International for £1.8 billion in May 2025. This move streamlined the company's operations, enabling a sharper focus on its core businesses, including automotive pollution filters and platinum group metals processing. The divestment was well-received by the market, as it reinforced the company's commitment to optimizing its portfolio and enhancing shareholder value.

Furthermore, leadership restructuring in November 2025, with the appointment of Alastair Judge as Chief Financial Officer and Richard Pike as Chief Operating Officer, has also played a role in shaping market perceptions. These changes are viewed as part of a broader effort to improve operational efficiency and strategic alignment, which could translate into better financial performance. Johnson Matthey also maintained its full-year outlook, expecting underlying operating profit growth at the higher end of a mid-single-digit percentage range.

Fresh highs to start the new year, with a breakout above resistance that is supported by analysts will give JMAT bulls plenty to smile about. Time will tell if the move can hold, or if a retest of the resistance break will be on the cards. For the time being, the shares continue to trade more than 2x the 52 week low of 1,131p, as sentiment firmly shifted during the final three quarters of last year.