Symrise's Growth Shows No Signs of Abating; Shares Overvalued

Wide-moat Symrise reported 8.3% organic growth in its first-quarter trading update, soundly beating the Vara consensus of 5.8% due to better-than-expected performance in the taste, nutrition, and health segment. The market was pleased with the results, sending the shares up 5% intraday. We currently expect 7% organic growth for the year and don’t expect to make a material change. Symrise’s confirmation of guidance for 5%-7% organic growth would support this notion. Accordingly, we expect to maintain our EUR 90 fair value estimate. At current levels, the shares look overvalued.