- Synthomer
- 07 May 2025 16:50:03
Source: Sharecast
Berenberg said Synthomer had experienced "a tough few weeks" until its Q1 update on 1 May, with concerns regarding the impact of a trade war being followed by a mid-April credit-rating downgrade by Moody's and a selloff in its 2029 bonds.
"The trading update – in which cost savings and mix appear to have driven a yoy improvement in group EBITDA despite a softer volume performance in its coatings business – has since stabilised the shares, at least temporarily," said Berenberg, which has a 'hold' rating on the stock.
The German bank stated long-awaited divestment of its UK inorganic chemicals business William Blythe to private equity firm H2 Partners and its management team for £30.0m should allow for "modest de-levering" year-on-year in 2025.
However, Berenberg cautioned that trade headwinds meant that further divestments "appear unlikely" in the next two to three months and said consensus underlying earnings estimates were "still a touch high" for its tastes.
Reporting by Iain Gilbert at Sharecast.com