SRH AlsterResearch AG Update: Symrise AG - Solid take-off in 2021, but fairly valued; HOLD

Symrise AG (Update)

Chemicals
MCap EUR 14.7bn

HOLD, PT EUR 100.00 (-8% potential)
Research_update

Symrise had a strong start to 2021, with organic sales increasing a 10.5% yoy in Q1 2021, owing to deferred benefits from the delivery backlog that resulted from the cyberattack in December 2020. Management confirmed its 2021 and mid-term targets, which seem achievable on an expanded portfolio and planned integration of the Flavor and Nutrition divisions, which may offer strong cross-selling opportunities. Despite the high quality of the business model, the current valuation levels seem to be fair in our point of view. Hence, we reiterate our HOLD recommendation as well as our DCF-based price target of EUR 100.00.

 

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