JPMorgan downgrades Givaudan stock to Neutral on expected fine fragrance slowdown

Published 09/10/2025, 06:42
JPMorgan downgrades Givaudan stock to Neutral on expected fine fragrance slowdown

Investing.com - JPMorgan downgraded Givaudan SA (SIX:GIVN) from Overweight to Neutral and lowered its price target to CHF4,000.00 from CHF4,200.00, citing expectations of a slowdown in the fine fragrance market.

The investment bank specifically pointed to an anticipated softening in the prestige fragrance segment, which it expects will impact Givaudan’s like-for-like sales growth in 2026. JPMorgan projects the company’s group like-for-like growth will ease to 4.1% with fine fragrances moderating to 4% growth.

Despite these near-term challenges, JPMorgan noted that Givaudan remains well-positioned to mitigate pressure through market share gains, strength in emerging markets (particularly the Middle East), and hedged exposure to the better-performing mass fragrance segment.

Following adjustments to top-line and margin forecasts, JPMorgan trimmed its 2026 earnings per share estimate by 2%, positioning its outlook slightly below consensus. The bank observed that Givaudan’s valuation multiples have eased to 24.5x PE for 2026, with its premium to European consumer staples moderating to approximately 30%.

While JPMorgan acknowledged that Givaudan’s high growth and quality credentials warrant a premium multiple long-term, it suggested uncertainty in the fine fragrance segment over the next 6-12 months may prevent the shares from outperforming in the near term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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