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Jan 23 2020, 06:30 GMT
Foods
2020: risk of a growth sabbatical – time for vigilance
- Sectors : Foods
- Companies : Givaudan | Kerry Group | Symrise | DSM-Firmenich
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| DSM-Firmenich | OUTPERFORM | 11/02/15 | Neutral | 16/07/14 | 11275c |
| Givaudan | NEUTRAL | 21/06/12 | N/A | N/A | 312700chf |
| Kerry Group | OUTPERFORM | 30/06/09 | N/A | N/A | 11750c |
| Symrise | NEUTRAL | 15/01/19 | Outperform | 21/06/12 | 9106c |
DAVY VIEW
Delivery of best-in-class revenue growth has been a defining tenet of sector leadership in Flavour and Fragrance (F&F)/Ingredients. A strong relationship exists between the rate of organic growth and valuation. Looking ahead, we are more cautious on the revenue environment as growth headwinds and volatility broaden. Relative to recent history, our models assume a more mundane growth outcome for FY20. As such, we expect to see greater demarcation in terms of equity performance in 2020.
