Update shared on 20 Nov 2025
Fair value Decreased 0.26%Analysts have slightly reduced their fair value estimate for Givaudan, lowering the price target from approximately CHF 4,005 to CHF 3,995. This adjustment reflects recent cautious sentiment amid ongoing pricing and competitive pressures in the sector.
Analyst Commentary
Recent street research reflects a mix of optimism and caution regarding Givaudan's positioning and growth outlook. Analysts have highlighted key factors shaping their stance on the company's valuation and competitive landscape.
Bullish Takeaways
- Bullish analysts have upgraded their outlook based on Givaudan's peer-leading organic sales growth. This positions the company favorably within the flavor and fragrance industry.
- Some view Givaudan as better equipped than competitors to manage mounting pricing pressures and challenges from Chinese firms. This suggests stronger execution capabilities.
- The company is recognized as a "best-in-class" player. Recent upgrades reflect confidence in its strategic direction and resilience in a tough market environment.
Bearish Takeaways
- Bearish analysts remain cautious and point to widespread derating in European consumer chemical stocks. Ongoing sector challenges are also impacting valuation.
- Multiple firms have reduced their price targets on Givaudan, citing continued pricing pressure and heightened competition as risks to near-term growth.
- The stock has maintained Hold or Neutral ratings, reflecting hesitancy around execution and the pace of potential recovery within the sector.
What's in the News
- Christian Stammkoetter has been appointed as the next CEO of Givaudan, succeeding Gilles Andrier, who will retire after 20 years in the role. (Key Developments)
- Stammkoetter currently serves as president of Asia, Middle East, and Africa at Danone. He will assume the CEO position at Givaudan effective March 1. (Key Developments)
- Gilles Andrier will be proposed as the next chairman at Givaudan's 2026 annual general meeting. Calvin Grieder is expected to step down after 12 years on the board. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased slightly from CHF 4,005 to CHF 3,995, reflecting a modest downward adjustment in analysts' expectations.
- Discount Rate has risen marginally from 4.45% to 4.49%, indicating a slightly higher required rate of return.
- Revenue Growth forecast has edged up from 3.69% to 3.74%, suggesting marginally stronger top-line expectations.
- Net Profit Margin projection has slipped minimally from 15.24% to 15.22%, pointing to a near-steady outlook on profitability.
- Future P/E (Price/Earnings) Ratio has fallen slightly from 32.07x to 32.02x, implying minor changes in market valuation assumptions.
Disclaimer
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