FRANKFURT (dpa-AFX) - Critical analyst comments on the consumer goods business caused Symrise and Beiersdorf to suffer further share price losses at the beginning of the week. In late morning trading, shares in flavor and fragrance manufacturer Symrise were down 3.5 percent to 98.12 euros, bringing up the rear of a moderately stronger DAX.
At the beginning of June, Symrise shares had reached a high of 107.20 euros, their highest level since November. However, since then, the situation has deteriorated significantly in terms of chart analysis. The shares are now trading below several average lines that are important for the short- to long-term trend.
The same applies to shares in consumer goods group Beiersdorf, which were the second-biggest losers on the DAX on Monday, falling 1.7 percent to 113.45 euros. In view of the losses of the past few days, the interim low of 110.95 euros from April is getting closer and closer. Since the beginning of the year, Symrise and Beiersdorf have recorded losses of 4.4 and 8.5 percent, respectively. The German benchmark index, on the other hand, has gained a whopping 18.4 percent over the same period.
The US research firm Jefferies downgraded Symrise to "underperform" due to concerns about demand for consumer goods, among other things, and lowered its price target to 90 euros. In addition, expert Charlie Bentley is cautious about Symrise's important pet food business, which in the past has driven above-average growth in the industry through its own efforts. Bentley believes that the situation is unfavorable in the first year under the new management, when the second half of the year is actually particularly important. He therefore sees certain risks for this year's sales outlook. Bentley also lowered its medium-term operating profit forecasts (EBITDA) and sees itself clearly below consensus expectations.
The US bank JPMorgan continues to recommend Beiersdorf with an "overweight" rating and a target price of €160. However, analyst Celine Pannuti fears a weaker performance in the consumer division than previously expected in her outlook. The reasons for this are increasing economic headwinds and weaker business in the US. In the current quarter, she expects only a minimal acceleration in comparable sales growth compared with the previous quarter. According to its own statement, its growth forecast for the year is at the lower end of the company's target range. Pannuti sees its operating earnings estimates below the consensus estimates. /gl/tih/jha/
