Key insights
- Goldman Sachs downgraded Symrise to Neutral, withdrawing its cyclical recovery thesis due to concerns over organic growth and margin progression in segments like Pet Food and Aroma Molecules. Despite the stock trading at a high P/E, analysis suggests it may be undervalued. The downgrade reflects potential headwinds for cyclical elements within the ingredients sector, which could have broader implications for consumer staples and related industries if these concerns materialize.
Investing.com - Goldman Sachs downgraded Symrise AG (SY1:GR) (OTC:SYIEY) to Neutral from Buy on Monday and set a price target of EUR79.00.
The firm cited the stock trading through its price target and withdrew its cyclical-recovery thesis. Goldman Sachs had upgraded Symrise in February on expectations that cyclical portfolio elements would support stronger growth relative to peers.
Since being added to the Buy list on Feb. 10, 2026, the stock fell 1.1% compared with the FTSE World Europe’s 0.5% gain. Symrise has been the best performer year-to-date among ingredients companies and consensus expectations have adjusted accordingly. The stock currently trades at a P/E ratio of 42.17, and InvestingPro analysis suggests the shares remain undervalued at current levels. According to InvestingPro Tips, the company is trading at a high earnings multiple—one of 8 additional tips available to subscribers.
Goldman Sachs now sees organic growth at risk from cyclical elements including Pet Food and Aroma Molecules despite easier year-over-year comparisons. The firm maintains a cautious stance on margin progression versus consensus.
Goldman Sachs sits 4% and 5% below consensus EBITDA for fiscal years 2026 and 2027 respectively, driven by lower margin assumptions of 120 basis points and 160 basis points. The firm views mix and synthetic price versus cost as more challenging particularly in the Scent & Care segment.
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