Update shared on04 Oct 2025
Fair value Decreased 4.97%Analysts have lowered their price target for DSM-Firmenich from €114.65 to €108.95. They cite reduced expectations for revenue growth and a higher discount rate, despite a marginal improvement in profit margins and future valuation metrics.
Analyst Commentary
Recent street research on DSM-Firmenich reflects a mix of positive and cautious sentiment following adjustments to price targets. Analysts remain focused on the company's valuation, growth prospects, and execution against market challenges.
Bullish Takeaways- Bullish analysts continue to see long-term value in DSM-Firmenich, maintaining Buy ratings despite trimming price targets.
- Profit margins show signs of marginal improvement, supporting the case for earnings resilience in a challenging environment.
- Favorable future valuation metrics suggest potential upside if execution on strategic initiatives continues as expected.
- Resilience in core businesses underpins confidence among bullish analysts regarding the company's ability to navigate market headwinds.
- Bearish analysts have taken a more cautious stance, significantly reducing price targets and maintaining Underweight ratings.
- Concerns remain about the pace of revenue growth, with muted expectations reflecting competitive and macroeconomic pressures.
- Elevated discount rates and persistent market uncertainties are seen as limiting factors for valuation expansion in the near term.
- Execution risk is elevated. Bearish analysts caution that further downside remains possible without meaningful improvement in business momentum.
What's in the News
- DSM-Firmenich AG launched Lacteol diarrhEase Kids, now available in the United States. This product provides a gentle, drug-free digestive solution recommended by pediatricians for children six months and older. The active ingredient, Lactobacillus LB, has over a century of clinical use and is supported by 40 peer-reviewed publications and 18 human clinical trials (Key Developments).
- The company completed a share buyback program and repurchased 4,580,734 shares, or 1.73% of its shares outstanding, for €432 million between February 13, 2025 and July 30, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from €114.65 to €108.95, reflecting a lowered valuation outlook.
- Discount Rate has risen slightly from 5.99% to 6.03%, indicating a marginally more cautious assessment of risk.
- Revenue Growth expectations have fallen from 2.49% to 2.21%, pointing to subdued growth prospects.
- Net Profit Margin has improved from 7.64% to 8.45%, signaling stronger profitability assumptions.
- Future P/E ratio has declined from 33.29x to 28.89x, suggesting the stock is valued at a lower multiple of expected earnings.
Disclaimer
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