LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity raised their target price on Synthomer from 425.0p to 550.0p on Monday after the group reported "robust" fourth-quarter figures last month.
Canaccord said Synthomer's recent results indicated strength in all its major markets and also pointed to a particularly solid rebound in styrene-butadiene rubber and multiple consumer-facing markets.

The Canadian bank stated that assuming recent strong margins continue through 2021, which it now believes to be likely, earnings will also be "much stronger" than its previous estimates.

Canaccord said it estimates that around 45% of this year's underlying earnings will come from Synthomer's nitrile business, with the balance being widely spread across end markets.

"The result is a significant increase in our earnings expectations: we are increasing EPS by an average of 30% from 2021E onwards," said the analysts, which also reiterated their 'buy' rating on the stock.

"We see management change, in the form of the scheduled retirement of well-regarded CEO Calum McLean, as a normal evolution and see the group in good shape for whoever is to replace him," concluded Canaccord.

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