Update shared on 07 Nov 2025
Fair value Decreased 2.64%Synthomer's analyst price target has been reduced from 112 GBp to 102 GBp. Analysts cite persistent end-market challenges and limited near-term prospects for earnings recovery as key factors behind the downward revision.
Analyst Commentary
Recent analyst coverage reflects a spectrum of perspectives regarding Synthomer's outlook, shaped by evolving market dynamics and the company's updated financial guidance. While some analysts express guarded optimism, the overall sentiment remains marked by caution due to persistent industry headwinds.
Bullish Takeaways
- Bullish analysts highlight that current price targets, while reduced, imply some confidence that Synthomer can maintain relative stability in a challenging environment.
- There is an expectation that maintaining a Neutral or Hold rating could position the company well for upside if end markets recover more quickly than anticipated.
- Some optimism remains around management's ability to navigate volatile demand cycles, supporting the view that downside risk may be limited at current valuation levels.
Bearish Takeaways
- Bearish analysts emphasize that price targets continue to move lower, reflecting reduced visibility on revenue growth and ongoing pressure from weak end markets.
- Forecast revisions downward point to a prolonged period of subdued earnings, with limited signs of recovery into fiscal 2026.
- Concerns remain over Synthomer's exposure to cyclical industries, which may delay a rebound in demand and profitability.
- Analysts note challenges in identifying clear catalysts for growth or substantial margin improvement in the near term, weighing on overall sentiment.
What's in the News
- Synthomer provided earnings guidance for 2026, anticipating progress in Group earnings and cash generation. This outlook is supported by benefits from self-help actions and product investments (Key Developments).
- Synthomer and Lummus Technology established a new partnership to license Synthomer's proprietary acrylic acid esters technology. The partnership targets expanded global applications and integrates bio-based feedstocks (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased modestly from £1.38 to £1.34, reflecting a more cautious outlook.
- Discount Rate has risen slightly from 12.94% to 13.19%, indicating increased perceived risk.
- Revenue Growth Projection has fallen significantly from 2.46% to 1.86%, highlighting tempered expectations for top-line expansion.
- Net Profit Margin remains essentially unchanged and stays near 7.37%.
- Future P/E Ratio has edged down marginally from 2.16x to 2.15x.
Disclaimer
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