FRANKFURT (dpa-AFX) - On Tuesday, shares in Symrise accelerated their recovery after hitting their lowest point since 2019 in December. In Xetra trading, the stock price surged by more than seven percent at its peak, reaching its highest level since late October, following the announcement by the fragrance and flavorings manufacturer of the planned sale of its terpenes business, a share buyback program, and write-downs. However, the price did not sustainably surpass the 100-day moving average. As the session progressed, gains eased to 4.1 percent.
Analyst Edward Hockin of US bank JPMorgan praised the share buyback, viewing it as a sensible use of available balance sheet resources. Ranulf Orr of Citigroup sees it, given the low valuation, as an indication that management is focused on shareholder interests. The program is set for up to 400 million euros. According to Virginie Boucher-Ferte of Deutsche Bank, this reflects the company's confidence that the biggest business challenges have largely been overcome.
Citigroup expert Orr also views the sale of the terpenes business positively, as some investors had previously doubted that management would be able to find a buyer. This move removes a capital-intensive and cyclical business segment from the portfolio. Negotiations are advanced, Symrise announced after the close of trading the previous evening. Thomas Schulte-Vorwick of Bankhaus Metzler believes that the divestment will improve the company's revenue growth and margin structure.
Deutsche Bank analyst Boucher-Ferte sees Symrise at a turning point after the stock's devaluation, which in 2025 made it the weakest DAX performer with an annual loss of about one third./tih/mis/stk
