Symrise Q2 In Line; Guidance Raised

Wide-moat Symrise reported first-half EBITDA of EUR 420 million, up 7% versus 2020 and in line with the Vara consensus. Organic growth of 9.7% also met expectations. Given progress to date, Symrise raised 2021 guidance to organic growth above 7% (previously 5%-7%) and an EBITDA margin of more than 21% (previously around 21%). We already have a similar forecast, so we don’t expect to make any material changes to our estimates or EUR 85 fair value estimate. At current levels, the shares look overvalued.