Why is Johnson Matthey stock climbing today?

Johnson Matthey's stock is experiencing a 2.2% increase today, bringing its price to 2516p after investment bank Citi reactivated coverage of the London-based specialty chemicals company. Analyst Ranulf Orr spearheaded the move, marking the end of a research hiatus by Citi. The bank's decision comes following a transformative year for Johnson Matthey, which has seen strategic pivots including the sale of its Catalyst Technologies division to Honeywell and the acquisition of U.S. catalysts firm Cormetech.

These moves have positioned the company around its Clean Air and platinum group metals (PGM) Services divisions. Citi anticipates adjusted earnings per share to rise by around 40% in 2027, slightly above the average analyst estimate, and has projected a 21% compound annual growth rate in EPS over the next five years. A key part of the company's strategy is an active share buyback program initiated in late September 2026, which provides a technical floor for the shares.

Analysts at other firms, like Jefferies, have also recently upgraded their rating on Johnson Matthey. The broader U.S. equity market was relatively neutral, with the S&P 500 up by 0.2% and the Nasdaq slipping slightly, suggesting that the JMAT move is primarily driven by the company’s strategic developments rather than macro factors.