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Investing.com - Deutsche Bank upgraded Givaudan SA (SIX:GIVN) from Hold to Buy on Monday, while raising its price target to CHF3,900.00 from CHF3,400.00.
The Swiss flavor and fragrance company’s stock rating was improved based on its current valuation, which Deutsche Bank notes has de-rated to 24x 2026 estimated P/E, representing a 25% discount to its five-year average and 16% below its ten-year average.
Deutsche Bank highlighted that Givaudan’s premium versus MSCI Europe has reached a ten-year low, while its premium compared to staples has returned to levels seen during COVID-19 and the 2022-2023 downturn, which the bank considers unwarranted given Givaudan’s 3.5 percentage point volume outperformance versus staples.
The bank raised its 2026-2028 EPS estimates for Givaudan by 1-2%, citing the company’s higher return on capital employed, strong free cash flow, and potential for further value creation through balance sheet redeployment.
Deutsche Bank also expressed confidence in the ingredients sector overall, noting it has grown over 5% annually for the past two decades, with volumes consistently outperforming global consumer staples companies by 3 percentage points—a trend expected to continue due to increasing engagement with local and regional customers and health, wellness, and sustainability trends.
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