Synthomer’s Stable Performance Amid Weak Demand: Hold Rating Maintained

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 aligning with their previously set guidance, indicating stability but not significant improvement in demand. The company has shown progress in earnings and cash flow, supported by internal initiatives, yet the overall demand remains weak, which may limit the company’s ability to reduce its debt significantly.
Despite achieving sales and EBITDA figures slightly above expectations, the net debt remains high, and the demand environment is not expected to improve markedly in the near term. Therefore, the Hold rating reflects a cautious outlook, as the company is expected to maintain its current performance levels without substantial changes to market consensus.