DSM-Firmenich (AO) | Hold | Preview for Q2-26: solid organic growth ahead

研报英文原文证据摘录

DSM-Firmenich (AO) | Hold | Preview for Q2-26: solid organic growth ahead

DSM-Firmenich Hold | Target Price: EUR67.00

Company description Management

DSM-Firmenich has two headquarters, one in Sisseln (Switzerland) and one in Dimitri de Vreeze

Maastricht (the Netherlands). The company is active in feed additives as well as Ralf Schmeitz

in ingredients for applications such as dairy, baking, savoury, and beverages. It Emmanuel Butstraen

also offers ingredients for baby food, dietary supplements, medical applications, Key shareholders

aroma molecules, fragrances, and cosmetics. Finally, it produces probiotics and Free float 100.00%

prebiotics. By disposing Animal Nutrition, it becomes even more comparable to Artisan 5.28%

its peers. Blackrock 4.18% Pometta (A + M Keller) 6.30%

Investment case Valuation methodology

After several disappointments in quarterly earnings and The DCF value for DSM-Firmenich is EUR67. We factor in the full

guidances, the track record of the company is not compelling. amount of synergies (EUR350m) and the full amount of

We doubt in any positive trigger in the near term. announced cost savings (EUR200m).

We doubt that DSM-Firmenich can reach 22-23% EBITDA margin We use a WACC of 7.4% and a terminal growth rate of 2.5% to set

in 2028. However, we expect some margin expansion to occur. our target price of EUR67.

ROCE (based on our definition) remains at a low level. Thus, the The peer group comparison confirms our view that the upside

company does not earn its cost of capital. But taking out all PPA from here is limited.

related effects, it earns its cost of capital. Risks to our rating

Catalysts To the upside: a huge rebound in consumer sentiment

To the upside: positive statements at investor event.