Barclays ups Givaudan to 'equal weight' on better outlook
** Barclays raises Swiss fragrance maker Givaudan GIVN.S to "equal weight" from "underweight" and hikes its PT by 14% to 4,000 Swiss francs ($4,462), pointing to a better than feared outlook for Fine Fragrances unit
** It says Givaudan's premium valuation reflects strong underlying momentum and expects an 2024 and 2025 adj. EBITDA 3%-4% ahead of company's consensus
** Although it forecasts some normalisation in organic growth, it sees few near-term negative catalysts for the company and upgrades its 2024 organic sales growth estimateby 250 basis points to 8.5%
** Barclays notes that sales growth at Givaudan's Fine Fragrance unit, which accounts for about 10% of group revenue, is proving more durable than the broker had feared
** Increased perfume sales online and stronger interest from younger generations are among the factors to offset a sharper slowdown in Fine Fragrance sales, it says
** Out of 25 analysts covering the company, eight rate it "strong buy" or "buy",16 rate it"hold" and three rate it "sell" or "strong sell"
($1 = 0.8965 Swiss francs)
Reporting by Isabel Demetz
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