DSM: Jefferies upgrades stock
(CercleFinance.com) - Jefferies has upgraded its rating on DSM shares from "hold" to "buy", despite trimming its target price from 152 to 150 euros, believing that the Dutch group's nutrition business is now trading at a discount of around 17% relative to its key peers.
The broker summarises that "the implied multiple for the Firmenich merger is now a more reasonable ~18x EV/EBITDA (pre synergies)."
"Importantly, it has significant financial headroom (>E6bn) to pursue either M&A led growth or increased shareholder returns post the transaction completion (1H 2023)," it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker summarises that "the implied multiple for the Firmenich merger is now a more reasonable ~18x EV/EBITDA (pre synergies)."
"Importantly, it has significant financial headroom (>E6bn) to pursue either M&A led growth or increased shareholder returns post the transaction completion (1H 2023)," it adds.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.