Symrise Stock: Strategic Overhaul Targets Higher Profitability

Symrise AG has unveiled its transformative "ONE Symrise" strategy, marking a significant shift in the company's operational approach. The comprehensive plan emphasizes digital transformation, particularly through the integration of AI technologies like SymVision AI, while focusing on expanding into promising sectors such as Health Actives, Pet Nutrition, and Personal Care. Under new leadership since April, the company has revised its financial targets upward, now aiming for an operating margin between 21 and 23 percent by 2028, alongside sustained organic growth of 5 to 7 percent annually. For 2024, the flavor and fragrance manufacturer projects organic growth exceeding 7 percent and an operating margin above 20 percent.

Market Response and Share Performance

Despite the ambitious strategic realignment, market reaction has been mixed. While initial response saw shares climb 0.5 percent to €103.80, recent trading sessions have witnessed pressure on the stock, which retreated to €103.25, marking a 1.2 percent decline. The stock has fallen from its early October peak of €125, though analysts maintain an average price target of €120.95, suggesting significant upside potential. Expectations for 2024 include earnings per share of €3.29 and a projected dividend of €1.23.