Sika on track for 5-year low after JPM cuts to 'underweight'

** Shares in Swiss chemicals firm Sika SIKA are down around 4% after J.P. Morgan downgrades to "underweight" from "neutral", citing a recent profit miss and lowered medium-term growth targets

** The broker sees Sika's 55% valuation premium to peers as "unsustainable" given the company's new growth targets are now broadly in line with those of key rival Saint-Gobain SGO

** It adds that outperformance versus peers is "no longer on the cards" and sees execution risks in a cost-saving plan it views as coming "a little too late" given issues in China

** Shares are on track for their lowest price since April 2020 if losses hold