SYENSQO (+) : Call feedback: steps in the right direction

Research evidence excerpt

SYENSQO (+) : Call feedback: steps in the right direction

EQUITIES

CHEMICALS

SYENSQO OUTPERFORMPRICE* EUR58.8  TARGET PRICE EUR70 (UPSIDE 19%)

FLASH NOTE

Call feedback: steps in the right direction

15 MAY 2026 Securities Research Report Production time: 14:33* (London time)

Research Analyst & Publishing Entities

Laurent Favre, CFA BNP Paribas London Branch (+44) 203 430 8518 laurent.g.favre@uk.bnpparibas.com

Key take-aways

The call was wide ranging, through cultural change under new CEO, Middle East, Composites focus (divisional head

on), and of course short-term trading. Nothing to re-think our view from this morning: consensus on Q2 is in the right

ball-park, largely derisking FY expectations. Long-term attraction of Composites confirmed. Syensqo still our preferred

cyclical on <7x 2027 EBITDA. We need to see further evidence of growth in Specialty Polymers to get back to the case

pre-Q4 reset, but we are glad we didn’t throw the towel in at that stage (Not throwing the baby out with the bathwater).

As to the stock today, sharp outperformance in a down market is logical to us, though the HSD perf seen this morning

looked aggressive.

Points of colour:

- Q2: didn’t provide an actual EBITDA pointer, or specifically said consensus was fine, but this was implied.

Comments: Q1 still expected to be the lowest quarter. For Q2 seeing improving order trends and gradual volume

recovery particularly in electronics (high incremental margins), but also expecting a stronger quarter in Composites.

- Culture: new CEO made several organisation changes in the top 10 executives. want to focus more on operational

and commercial excellence. Also seeing tighter discipline on capex (hence the guidance cut by up to €50m)