Deutsche Bank cuts Symrise stock price target to EUR123

Published 27/03/2025, 13:52
Deutsche Bank cuts Symrise stock price target to EUR123

On Thursday, Deutsche Bank (ETR:DBKGn) adjusted its price target for Symrise AG (ETR:SY1G) (SY1:GR) (OTC: SYIEY), a leading global supplier of fragrances, flavorings, cosmetic active ingredients, and raw materials, reducing it from EUR125.00 to EUR123.00. Despite this change, the firm maintained a Buy rating on the company’s stock.

The adjustment follows Deutsche Bank’s forecast of Symrise’s first-quarter sales, which are expected to increase by 3.7% year-over-year, excluding the effects of foreign currency exchange rates and the previous fiscal year’s strategic divestments. This growth is anticipated to be within the 3-4% range that management recently indicated. The predicted expansion is largely attributed to a 4.2% increase in volume, although this represents a slowdown compared to the roughly 8% volume growth seen in the first quarter of 2024.

Symrise’s Scent & Care division is expected to experience more modest organic sales growth of 2%, primarily due to challenging comparisons with the previous year and previously indicated de-stocking in UV filters. In contrast, the Taste, Nutrition & Health division is forecasted to deliver stronger organic sales growth of 4.8%, propelled by robust volume growth, which may be partially offset by declining egg protein prices.

Looking ahead to the full year 2025, Deutsche Bank anticipates that Symrise’s management will reaffirm their guidance for 5-7% organic growth, aligning with Deutsche Bank’s own estimate of a 5.0% increase. Additionally, the company is expected to maintain an EBITDA margin of around 21%, with Deutsche Bank projecting a slightly higher margin of 21.1%. The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin is also projected to be evenly distributed between the first and second halves of the year.

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