Symrise: Société Générale upgrades to buy.
(CercleFinance.com) - Société Générale (SG) has upgraded its “hold” rating on Symrise, the German aroma and fragrance specialist, to “buy.
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SG says that the latest investments should boost growth, with SG therefore raising its 12-month target price from 62 euros to 85 euros (+37.1%).
"Symrise's recent increase in growth capex should results in accelerated volume growth, improving earnings, and FCF momentum from 2019," its report says.
Indeed, Symrise is not a direct beneficiary of the citral shortage, an aromatic ingredient, at BASF. Symrise has used another chemical formulation for menthol and its production, which is therefore not affected by BASF's problems, and is already pre-sold by contracts lasting three to five years, SG explains.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
”
SG says that the latest investments should boost growth, with SG therefore raising its 12-month target price from 62 euros to 85 euros (+37.1%).
"Symrise's recent increase in growth capex should results in accelerated volume growth, improving earnings, and FCF momentum from 2019," its report says.
Indeed, Symrise is not a direct beneficiary of the citral shortage, an aromatic ingredient, at BASF. Symrise has used another chemical formulation for menthol and its production, which is therefore not affected by BASF's problems, and is already pre-sold by contracts lasting three to five years, SG explains.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.