Symrise Delivers Another Quarter Of Stellar Growth And Raises Guidance; Shares Overvalued

Wide-moat Symrise reported 8.3% organic growth in the third quarter, exactly in line with the Vara consensus. Shares are trading flat intraday. The company updated organic growth guidance for 2021 to 9% (from above 7% previously) with an EBITDA margin above 21% (unchanged). Given year-to-date results, we are raising our 2021 organic growth estimate to 9.1%. That and some other tweaks to our forecast boost our fair value estimate to EUR 90 from EUR 85. However, shares continue to look expensive in our discounted cash flow model.