Warburg Research Lowers Target on Symrise to €115 - 'Hold'

Key Points

• Warburg Research has downgraded its target price for Symrise shares to €115 from €130, maintaining its "Hold" rating.
• The research firm cited concerns about rising raw material costs and a potential slowdown in demand for flavors and fragrances.
• Symrise shares have underperformed the broader market in recent months, falling by around 10% year-to-date.

Analyst Commentary

In a note to clients, Warburg Research analyst Christian Faitz lowered his target price on Symrise shares to €115, citing concerns about rising raw material costs and a potential slowdown in demand for flavors and fragrances.

"We believe that Symrise is facing a number of challenges in the current environment," Faitz wrote. "Rising raw material costs are putting pressure on margins, and we see a risk that demand for flavors and fragrances could slow down in the coming quarters as consumers become more price-sensitive."

Faitz added that he is also concerned about Symrise's exposure to the consumer goods sector, which is facing a number of headwinds at the moment. "We believe that Symrise's exposure to the consumer goods sector could weigh on its performance in the coming quarters," he said.

Symrise Share Price Performance

Symrise shares have underperformed the broader market in recent months, falling by around 10% year-to-date. The stock has been hit by concerns about rising raw material costs and a potential slowdown in demand for flavors and fragrances.

Symrise shares are currently trading at around €110, below Warburg Research's target price of €115. The stock has a market capitalization of approximately €10 billion.

Conclusion

Warburg Research has downgraded its target price for Symrise shares to €115 from €130, maintaining its "Hold" rating. The research firm cited concerns about rising raw material costs and a potential slowdown in demand for flavors and fragrances.

Symrise shares have underperformed the broader market in recent months, falling by around 10% year-to-date. The stock is currently trading at around €110, below Warburg Research's target price of €115.