Synthomer (SYNT)

Sector:

Industrial Chemicals

Index:

FTSE Small Cap

154.00p
   
  • Change Today:
      8.30p
  • 52 Week High: 1,104.17
  • 52 Week Low: 122.50
  • Currency: UK Pounds
  • Shares Issued: 163.57m
  • Volume: 392,995
  • Market Cap: £251.89m

Berenberg hikes target price on Synthomer

By Iain Gilbert

Date: Friday 06 Oct 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg upped their target price on chemicals firm Synthomer from 115.0p to 400.0p on Friday, stating the group's balance sheet had now been "repaired".
Berenberg said Synthomer's current situation reminded it of the predicament faced by the company in late 2008 and early 2009 as cyclical headwinds and "elevated, although not extreme" leverage left shares plunging to lows similar to today's level, falling by over 90% from Covid-19 pandemic highs.

The German bank, which reiterated its 'buy' rating on the stock, highlighted that Synthomer was "a classic early cycle share". However, it also pointed out that shares "more than quadrupled" in the subsequent two years following early 2009.

As far as Berenberg is concerned, the fully-underwritten £276.0m rights issue announced on 7 September has taken the sting out of the worst-case scenario, and the bank said that while it was early to upgrade, the attractions of a2025 price-to-earnings ratio of just 6.0x and 15% free cash flow yield on a de-risked balance sheet were "plain to see".

"The just over 10% average reductions to operating profit mainly reflect lower assumed nitrile latex margins and weaker volume outlook in 2024 for the construction-and-coatings linked component of sales. Our earnings per share changes are less meaningful, as the company has run a 20-1 for stock consolidation stock prior to the 6-1 rights issue," said Berenberg.

Reporting by Iain Gilbert at Sharecast.com

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Synthomer Market Data

Currency UK Pounds
Share Price 154.00p
Change Today 8.30p
% Change 5.70 %
52 Week High 1,104.17
52 Week Low 122.50
Volume 392,995
Shares Issued 163.57m
Market Cap £251.89m

Synthomer Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.37% above the market average96.37% above the market average96.37% above the market average96.37% above the market average96.37% 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
Price Trend
97.38% below the market average97.38% below the market average97.38% below the market average97.38% below the market average97.38% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Income Not Available
Growth
40.11% above the market average40.11% above the market average40.11% above the market average40.11% above the market average40.11% above the market average
44.44% above the sector average44.44% above the sector average44.44% above the sector average44.44% above the sector average44.44% above 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 01-Mar-2024

Time Volume / Share Price
16:35 128,466 @ 154.00p
16:35 278 @ 154.00p
16:35 279 @ 154.00p
16:35 280 @ 154.00p
16:35 280 @ 154.00p

Synthomer Key Personnel

CFO Lily Liu

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