Synthomer (SYNT)

Sector:

Industrial Chemicals

Index:

FTSE Small Cap

180.00p
   
  • Change Today:
      7.20p
  • 52 Week High: 334.00p
  • 52 Week Low: 122.50p
  • Currency: UK Pounds
  • Shares Issued: 163.57m
  • Volume: 560,397
  • Market Cap: £294.42m

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 180.00p
Change Today 7.20p
% Change 4.17 %
52 Week High 334.00p
52 Week Low 122.50p
Volume 560,397
Shares Issued 163.57m
Market Cap £294.42m

Synthomer Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
63.99% above the market average63.99% above the market average63.99% above the market average63.99% above the market average63.99% above the market average
46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average
Price Trend
69.68% below the market average69.68% below the market average69.68% below the market average69.68% below the market average69.68% below the market average
6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average
Income Not Available
Growth
12.71% below the market average12.71% below the market average12.71% below the market average12.71% below the market average12.71% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average

Synthomer Dividends

  Latest Previous
  Interim Final
Ex-Div n/a 01-Jun-22
Paid n/a 05-Jul-22
Amount 0.000p 21.30p

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 69,765 @ 180.00p
16:35 1,935 @ 180.00p
16:35 2,074 @ 180.00p
16:35 441 @ 180.00p
16:35 470 @ 180.00p

Synthomer Key Personnel

CFO Lily Liu

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