Jefferies analyst Vanessa Jeffriess maintained a Hold rating on Synthomer today and set a price target of p100.00.
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Vanessa Jeffriess’s rating is based on several factors that highlight Synthomer’s current financial challenges and market conditions. The company’s recent interim results fell short of expectations in terms of sales and EBITDA, while net debt levels were higher than anticipated. This financial performance, coupled with downgraded guidance for FY25, suggests a challenging outlook for the company.
Additionally, Synthomer is experiencing significant volatility and geographic disparities, with positive developments in Adhesive Solutions being overshadowed by difficulties in other areas, such as the energy solutions business. Despite efforts to implement cost savings and expand disposal programs, the near-term prospects for earnings improvement and debt reduction appear limited. These factors contribute to the Hold rating, as the potential for material earnings recovery is recognized but not expected in the immediate future.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a p83.00 price target.