Symrise: Solid Organic Growth Continues While Management Remains Conservative on Guidance

Wide-moat Symrise reported nine-month organic sales growth of 11.1%, slightly ahead of the Vara consensus of 10.6%. Management expects full-year organic growth to be around 7%, which, despite being at the upper range of the prior guidance of 5%-7%, would imply a like-for-like sales decline in the fourth quarter, which we view as overly conservative. Still, in reporting currency, Symrise's sales growth amounted to 5.9% year to date, which tracks our expectations for the full year given adverse currency effects, and we're leaving our fair value estimate unchanged at EUR 112 per share. At current levels, shares appear fairly valued.