Dsm-Firmenich AG : Morgan Stanley raises target price to EUR 132 from EUR 99
BUZZ-MS raises DSM to 'overweight', says split should boost profit
09:12 22/05/2024
- Morgan Stanley raises its rating on chemicals company DSM-Firmenich to "overweight" from "equal weight", saying the split of its Animal Nutrition & Health business should boost earnings visibility and profitability
- DSM said in February it would spin out the business next year, to sharpen its focus on nutrition, health, and beauty
- "The Animal Nutrition & Health carve-out (separation by 2025e) should shift focus away from the most cyclical, lowest-multiple division, driving greater earnings visibility and profitability, unlocking a higher rating," Morgan Stanley said
- It raises DSM target price by 33% to 132 euros. DSM's shares were up 2% to almost 109 euros at 0706 GMT.
- Out of 24 analysts that cover DSM-Firmenich AG, 18 rate the stock "strong buy/buy", four rate it "hold" and two rate it "strong sell/sell"
(Reporting by Olivier Sorgho; Editing by Alexander Smith)
((michal.aleksandrowicz@tr.com))