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Share Price:
Up 526.00p
Change Today:
2.00p
Market Cap:
2,234.72m
Sector:
Chemicals

Berenberg raises target price on Synthomer

By Iain Gilbert

Date: Monday 25 Jan 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on chemicals group Synthomer from 430.0p to 515.0p on Monday, stating continued upgrades from nitrile latex provided "an auspicious backdrop" for 2021.
Berenberg, which reiterated its 'buy' rating on the stock, said cash margins in nitrile were "monstrous", and were also likely to remain so for at least the next two years.

The German bank pointed out that Synthomer's recent trading update increased full-year 2020 underlying earnings guidance by 10% to roughly 255.0m, with the main driver being higher margins for nitrile latex used in making rubber gloves, with prices more than doubling since January 2020.

"We believe EBIT per tonne will have doubled since 2018 to circa 345 in 2021, and consensus has not yet caught up," stated Berenberg, which presented a supply-demand model suggesting nitrile latex industry utilisation in the fourth quarter of 2020 may have exceeded 100% and added it does not believe there will be enough new supply to force margins to revert until 2023/24 at the earliest.

"By this stage, we believe Synthomer's leverage will be minimal and investor focus will have returned to large acquisitions following 2020's successful takeover of US group Omnova."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Synthomer Market Data

Currency UK Pounds
Price 526.00p
Change Today 2.00p
52 Week High 552.00p
52 Week Low 269.40p
Volume 113,706
Shares Issued 424.85m
Market Cap 2,234.72m

Performance Indicators

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What The Brokers Say

Strong Buy 9
Buy 1
Neutral 4
Sell 0
Strong Sell 0
Total 14
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Synthomer Dividends

  Latest Previous
  Final Interim
Ex-Div 03-Jun-21 22-Oct-20
Paid 05-Jul-21 10-Nov-20
Amount 8.60p 3.00p

Trades for 22-Jun-2021

Time Volume / Share Price
14:46 112 @ 526.00p
14:46 304 @ 526.00p
14:44 52 @ 526.00p
14:44 218 @ 525.50p
14:44 27 @ 525.50p

Synthomer Key Personnel

CEO Calum MacLean
CFO Steve Bennett