Synthomer (SYNT)

Sector:

Industrial Chemicals

Index:

FTSE 250

301.20p
   
  • Change Today:
      0.20p
  • 52 Week High: 414.84p
  • 52 Week Low: 279.00p
  • Currency: UK Pounds
  • Shares Issued: 339.88m
  • Volume: 70,297
  • Market Cap: £1,023.72m
  • Beta: 1.38

Berenberg lowers target price on Synthomer

By Iain Gilbert

Date: Thursday 08 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg reiterated their 'buy' rating on speciality chemicals maker Synthomer on Thursday following the group's "robust" second-quarter results.
Berenberg praised Synthomer for its "pleasingly uneventful" first-half results in what it labelled a "difficult period" for the chemicals sector.

"Shares are now well into their fifth year of continued improvement in PBT, and the valuation would imply a magnitude of downgrades that are simply not materialising," said Berenberg.

The German bank said Synthomer's adjusted pre-tax profits of £70.0m appeared to have been "broadly in line with expectations" and highlighted that "robust margins" in nitrile latex seemed to have offset the impact of recent insolvencies in the paper industry, a key user of styrene-butadiene.



However, the broker lowered its target price on the group's shares to 360.0p from its previous 470.0p mark on the back of Synthomer's recently announced rights issue, higher pensions liability and lower estimates for its core business.

Their lower estimates for the company's sales and earnings mainly reflected the purchase of Omnova and assumed a 1 December transaction close.

The analysts "substantially" reduced their margin and volume estimates for Synthomer's styrene-butadiene rubber latex business to reflect the ongoing weakness in the paper industry and also trimmed their volumes forecasts for the coatings-orientated functional solutions segment, with the net underlying downgrade equating to roughly 4% of underlying earnings.

Nonetheless, said Berenberg: "This pales into insignificance compared with some of the cuts to heftier estimates for industrial chemicals and is clearly at odds with robust, synergy-driven earnings growth and a single-digit P/E."

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Synthomer Market Data

Currency UK Pounds
Share Price 301.20p
Change Today 0.20p
% Change 0.07 %
52 Week High 414.84p
52 Week Low 279.00p
Volume 70,297
Shares Issued 339.88m
Market Cap £1,023.72m
Beta 1.38

Synthomer Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
10.7% below the market average10.7% below the market average10.7% below the market average10.7% below the market average10.7% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
62.9% below the market average62.9% below the market average62.9% below the market average62.9% below the market average62.9% below the market average
23.81% below the sector average23.81% below the sector average23.81% below the sector average23.81% below the sector average23.81% below the sector average
Income
56.44% above the market average56.44% above the market average56.44% above the market average56.44% above the market average56.44% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
42.15% above the market average42.15% above the market average42.15% above the market average42.15% above the market average42.15% above the market average
57.89% above the sector average57.89% above the sector average57.89% above the sector average57.89% above the sector average57.89% above the sector average

What The Brokers Say

Strong Buy 6
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Synthomer Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 06-Jun-19
Paid 05-Nov-19 05-Jul-19
Amount 4.00p 9.10p

Trades for 15-Nov-2019

Time Volume / Share Price
13:29 163 @ 301.20p
13:29 31 @ 301.20p
13:29 135 @ 301.20p
13:29 120 @ 301.20p
13:02 2,000 @ 300.80p

Synthomer Key Personnel

CEO Calum MacLean
CFO Steve Bennett

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