On Friday, UBS raised the price target for Symrise AG (SY1:GR) (OTC: SYIEY) to €139.00 from the previous €132.00 while maintaining a "Buy" rating on the stock. The firm anticipates that the upcoming third-quarter results for Symrise, expected on October 24, will display robust organic sales growth (OSG).
The analyst projects a 9.4% increase in group OSG for the third quarter of 2024, which is 130 basis points higher than the Visible Alpha consensus of 8.1%. This forecast includes a year-over-year volume growth of 9.0% and a price increase of 0.4%. The estimated reported sales for Q3 are around €1,269 million, approximately 1% higher than the Visible Alpha consensus of €1,258 million.
For the Scent & Care (S&C) division, the analyst expects a significant 9.5% OSG, surpassing the consensus estimate of 6.3%. In the Taste, Nutrition & Health (T,N&H) division, a slightly lower OSG of 9.4% is forecasted, which is still marginally above the consensus of 9.2%.
The adjustment in the price target reflects positive expectations for Symrise's performance in the third quarter. The company's results will be closely watched by investors as the date of the report approaches.
InvestingPro Insights
The recent update from UBS on Symrise AG's stock is optimistic, and a deeper look through InvestingPro's lens provides additional context for investors. According to InvestingPro data, Symrise AG boasts a market capitalization of $19.18 billion, highlighting its significant presence in the industry. With a Price/Earnings (P/E) ratio of 43.74 and a more adjusted P/E ratio for the last twelve months as of Q2 2024 at 42.0, the company trades at a premium, reflecting high expectations for future earnings growth. This is further supported by a PEG Ratio for the same period standing at 0.67, suggesting that the company's earnings growth could justify its P/E ratio.
InvestingPro Tips indicate that Symrise AG has a record of raising its dividend for 14 consecutive years, which is a positive sign for income-focused investors. Moreover, the company's stock is noted for trading with low price volatility, which might appeal to investors seeking stability in their portfolios. For those interested in further insights, there are additional InvestingPro Tips available that could provide a more comprehensive investment thesis on Symrise AG.
As the third-quarter report date nears, these metrics and historical performance indicators can provide investors with a more nuanced understanding of the company's financial health and market position. For a deeper dive into these and other metrics, investors can explore the full range of InvestingPro Tips for Symrise AG at https://www.investing.com/pro/SYIEY.
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