Mixed Messages

Headlines say Stocks to fall amid mixed messages about Middle East conflict and all stock picks this week 80% BUY, 9% HOLD and 11% SELL.

1. BUY S4 Capital

Top stock pick this week is BUY S4 Capital by Jefferies with a tip performance of 12%.

S4 is a marketing and advertising agency based in London.

S4 share price launched at 174p in 2016, rose to an all-time high of 822p in 2021 and is today at 26p.

On 24th March the company issued 2025 results in this RNS reflect a year shaped by weaker demand from major technology clients, who redirected budgets toward AI infrastructure rather than marketing, as well as a generally tougher global economic environment that slowed decision making and lengthened sales cycles. It said it expects revenue to be inl ine with expectations. Shares rose 15%.

In Stockomendation three analysts: Deutsche Bank with HOLD; Jefferies with BUY and Barclays with EQUAL WEIGHT. One open UK fund manager short position, view that here.

2. BUY Croda

Second top performing stock pick is BUY Croda International by Goldman Sachs with a tip performance of 9%.

Croda International is a chemicals company that produces high-performance ingredients for consumer care and life sciences. Founded in 1925 it is known for using "smart science" to produce sustainable, bio-based ingredients.

Croda share price launched at 217p, rose to an all-time high of 10,410p and is now at 2,835p.

Goldman Sachs has recently issued a rare double upgrade on Croda International, moving the stock from SELL → BUY, a reversal that reflects an improved view of the company’s trading momentum and execution. According to multiple broker recommendation reports, Goldman now believes Croda’s self help recovery measures including operational restructuring, margin support actions, and commercial repositioning have delivered organic sales growth ahead of expectations. This improvement was strong enough that Goldman lifted its earnings forecasts for 2026–2027, with adjusted EBIT estimates increased by 13–14%, driven by stronger second half exit rates and more supportive pricing conditions in specialty chemicals.

Goldman also highlights that Croda has begun outperforming comparable specialty ingredient peers, such as Givaudan, Symrise, and DSM Firmenich, a contrast to earlier periods when Croda had lagged the sector. Their new price target—3,200p—reflects confidence that the company is now emerging from a long stretch of underperformance, supported by stabilising demand patterns and improved execution. The upgrade was influential enough to trigger a notable positive share-price reaction, with Croda described as one of the few risers on a day when broader UK indices were sharply down.

Goldman Sachs’ BUY rating is driven by Croda’s stronger than expected organic recovery, better pricing conditions in a tightening chemical market, margin improvement, and clear outperformance versus sector peers—factors that collectively justify Goldman’s upgraded forecasts and higher valuation expectations.

In Stockomendation five analysts: three with BUY they are Goldman Sachs, Berenberg and UBS; Deutsche Bank with HOLD and Morgan Stanley with OVERWEIGHT. Two open UK fund manager short positions, view those here.

3. BUY Johnson Matthey

Third top performing stock this week is BUY Johnson Matthey by Berenberg with a tip performance of 8%.

Johnson Matthey is a British multinational specialty chemicals and sustainable technologies company. Founded in 1817, the company is a constituent of the FTSE 250 Index.

Johnson Matthey share price launched at 466p in 1993, rose to an all-time high of 3,788p in 2018 and is today at 1,898p.

Berenberg has upgraded Johnson Matthey from Hold → Buy, citing a combination of improving fundamentals and a favourable environment for the company’s core precious metals linked businesses. Berenberg states that Johnson Matthey’s earnings upgrades are more plausible than downgrades in 2026, supported by tightening supply in platinum group metals and the stock’s increasing correlation with gold price. The bank also lifted its price target substantially, reflecting improved cash flow expectations and declining capital intensity within the business. Berenberg sees Johnson Matthey as benefiting from supportive macro conditions: strong PGM prices, stabilising real yields, and a share price that has historically moved inversely with US real yields.

Berenberg’s BUY rating is driven by a tighter and more supportive PGM market; improving cash flows and reduced capital intensity; strong correlation with precious metals price dynamics; growing likelihood of earnings upgrades rather than cuts and structurally stronger outlook relative to the broader chemicals sector.

In Stockomendation three analysts: Berenberg and Deutsche Bank with BUY and JP Morgan with NEUTRAL. One open fund manager short position, view that here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 5th December 2025.