Morgan Stanley lifts Syensqo stock rating to Overweight, PT to EUR89

Published 04/02/2025, 09:48
Morgan Stanley lifts Syensqo stock rating to Overweight, PT to EUR89

On Tuesday, Morgan Stanley (NYSE:MS) upgraded Syensqo SA (SYENS:BB) stock from Underweight to Overweight, significantly raising the price target from EUR66.00 to EUR89.00. The revision reflects the firm’s positive outlook on the company’s future earnings and potential growth into 2026.

The upgrade comes with a detailed analysis from Morgan Stanley, highlighting key factors that could influence Syensqo’s financial performance. According to the firm, the market is expected to soon begin valuing the company’s prospects for 2026, driven by faster earnings growth anticipated from the second half of 2025 into the following year. Additionally, the resolution of an IRS tax agreement could enable Syensqo to improve the quality of its portfolio.

Morgan Stanley’s updated valuation approach now includes a return-based valuation to better represent the potential growth of Syensqo post-2026. This new methodology is a significant factor in the increased price target, as it aims to capture the company’s long-term value.

In their commentary, Morgan Stanley stated, "Earnings expectations have reset. We think the market will soon start to discount the outlook for 2026, backed by: 1) faster earnings growth from 2H25 into 2026; 2) the abatement of the IRS tax agreement enabling potential high-grading of the portfolio. We incorporate a return-based valuation into our PT methodology to capture the potential in ’26+. With catalysts coming into sight, the stock looks attractive to us. We move to Overweight."

The firm’s decision to upgrade Syensqo’s stock rating and price target is based on their analysis and expectations for the company’s future performance and market position. This upgrade suggests Morgan Stanley’s confidence in Syensqo’s ability to grow and deliver value to its shareholders in the coming years.

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