Warburg Research Lowers Symrise Target to €115, Maintains 'Hold'
German Investment Bank Warburg Research has recently revised its price target for Symrise, a German flavors and fragrances company, from €135 to €115, while maintaining its 'Hold' rating.
Symrise has been impacted by the challenging economic environment, with inflation and supply chain disruptions affecting its business.
Warburg Research cited the challenging economic environment, including inflation and supply chain disruptions, as factors that have impacted Symrise's business. The bank noted that Symrise has been facing cost pressures due to higher raw material and energy prices, as well as transportation costs.
The bank also pointed to Symrise's exposure to emerging markets, which have been experiencing currency fluctuations and economic headwinds. Warburg Research believes that these factors will continue to weigh on Symrise's performance in the near term.
Despite the challenges, Warburg Research still sees value in Symrise's long-term prospects. The bank believes that Symrise's strong market position, innovative product portfolio, and focus on sustainability will support its growth in the future.
Warburg Research's 'Hold' rating suggests that the bank believes Symrise's shares are fairly valued at current levels. The bank recommends that investors hold onto their Symrise shares but does not expect significant upside potential in the near term.
Here are some additional key points from Warburg Research's report:
- Warburg Research expects Symrise's revenue to grow by 6.5% in 2023, below the company's guidance of 7-9% growth.
- The bank expects Symrise's earnings per share to decline by 10% in 2023, due to the impact of higher costs.
- Warburg Research believes that Symrise's valuation is attractive, with the stock trading at around 12x its estimated 2023 earnings.
Investors should note that Warburg Research's target price and rating for Symrise are subject to change based on future developments. It is important to conduct your own research and consult with a financial advisor before making any investment decisions.
