Synthomer (SYNT)

Sector:

Industrial Chemicals

Index:

FTSE 250

325.40p
   
  • Change Today:
    -5.20p
  • 52 Week High: 512.95
  • 52 Week Low: 279.80
  • Currency: UK Pounds
  • Shares Issued: 339.88m
  • Volume: 422,047
  • Market Cap: £1,105.97m
  • Beta: 0.03

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."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Synthomer Market Data

Currency UK Pounds
Share Price 325.40p
Change Today -5.20p
% Change -1.57 %
52 Week High 512.95
52 Week Low 279.80
Volume 422,047
Shares Issued 339.88m
Market Cap £1,105.97m
Beta 0.03

Synthomer Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
63.39% below the market average63.39% below the market average63.39% below the market average63.39% below the market average63.39% below the market average
80.95% above the sector average80.95% above the sector average80.95% above the sector average80.95% above the sector average80.95% above the sector average
Price Trend
59.12% below the market average59.12% below the market average59.12% below the market average59.12% below the market average59.12% 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
45.70% above the market average45.70% above the market average45.70% above the market average45.70% above the market average45.70% 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
41.08% above the market average41.08% above the market average41.08% above the market average41.08% above the market average41.08% 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 2
Sell 0
Strong Sell 1
Total 9
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 17-Sep-2019

Time Volume / Share Price
16:35 139,965 @ 325.40p
16:29 28 @ 325.80p
16:29 425 @ 325.80p
16:29 883 @ 325.80p
16:29 319 @ 325.80p

Synthomer Key Personnel

CEO Calum MacLean
CFO Steve Bennett

Top of Page