FRANKFURT/ZURICH (dpa-AFX) - Analyst praise propelled Symrise shares sharply higher on Tuesday. By mid-morning, the stock had climbed 5.1 percent to 79.66 euros, securing the top spot on the DAX. This surge also saw the flavor and fragrance manufacturer's shares break back above the 21-day moving average, a key technical indicator for short-term trends. The stock's year-to-date gains now exceed 15 percent.

JPMorgan analyst Edward Hockin is optimistic ahead of the second-quarter results due in late July. He anticipates a pick-up in organic sales growth to three percent. Symrise is expected to benefit from a more favorable year-on-year comparison and solid performance across its fragrance, food, and beverage divisions. This is further supported by a gradual recovery in the pet food and cosmetic ingredients segments. Additionally, pricing dynamics are expected to improve throughout the remainder of the year.

Consequently, Hockin maintains his 'Overweight' rating with a price target of 100 euros. This makes him one of the most bullish analysts tracked by Bloomberg. Reaching this target would imply an upside potential of approximately 25 percent for Symrise shares. Hockin noted that the current valuation of the flavor and fragrance producer remains attractive. However, he expects margins to remain under pressure, leading him to leave his earnings per share estimates largely unchanged.

Only a day earlier, a sector study from US investment bank Goldman Sachs had weighed on Symrise shares. In the report, analyst Georgina Fraser predicted a renewed downturn for the European chemicals industry. She subsequently downgraded Symrise to 'Neutral' on Monday, favoring Swiss rival Givaudan instead, arguing that the market was overlooking Givaudan's exceptional growth and margin prospects.

Now, Deutsche Bank expert Virginie Boucher-Ferte has also issued a 'Buy' recommendation for Givaudan. She noted that at a recent industry event, management from both the Swiss firm and Symrise expressed confidence. Demand remains robust and is expected to drive organic growth for manufacturers. Rising costs are largely being passed on to customers, which should protect profitability for most companies in the sector.

Givaudan shares were up nearly six percent on Tuesday. Further momentum for the Swiss group came from JPMorgan analyst Celine Pannuti, who placed the stock on 'Positive Catalyst Watch'. With projected organic growth of 4.1 percent for the second quarter, she expects Givaudan to slightly outperform the estimates her colleague Edward Hockin has penciled in for Symrise./niw/tih/jha/