Diversey reinstated with an Underperform at BofA amid near-term challenges

As previously reported, BofA analyst Steve Byrne reinstated coverage of Diversey with an Underperform rating and $6 price target. The company’s earnings have been held back by its exposure to Europe and persistent cost inflation, which are challenges that are unlikely to improve in the near-term, BofA tells investors. Diversey has struggled to offset 40% raw material cost inflation in the last two years, though cost deflation may not occur until late 2023, the firm added.