Cautious Hold Rating on Synthomer Amid Mixed Performance and Market Challenges

In a report released today, Vanessa Jeffriess from Jefferies reiterated a Hold rating on Synthomer (SYNT – Research Report), with a price target of p140.00.

Vanessa Jeffriess’s rating is based on Synthomer’s recent performance and future outlook. The company has shown positive EBITDA growth despite a challenging market environment, which is a commendable achievement. However, Synthomer is currently facing several obstacles, including weaker CCS markets that may hinder any significant recovery in the near term.
While there are opportunities for self-help measures and potential asset disposals, the company’s capacity to reduce its debt remains constrained. The positive performance in certain segments, such as Adhesive Solutions and Health & Protection, contrasts with challenges in Coatings & Construction Solutions, where market activity has been inconsistent. These mixed signals contribute to the Hold rating, reflecting a cautious stance on Synthomer’s immediate prospects.