Symrise Delivers 10.5% Organic Growth in First Quarter; Shares Overvalued

Wide-moat Symrise reported 10.5% organic growth in its first-quarter trading update. This beat the Visible Alpha consensus of 8.5%. However, market expectations likely rose after Givuadan’s big beat earlier in the month. Consequently, Symrise shares are down 1% intraday. We’ve raised our 2021 organic growth forecast to 7.3% from 5.8%, but the positive effect is offset by an increasing currency headwind. As a result, we are maintaining our EUR 85 fair value estimate. At current levels, the shares look overvalued.