Exane BNP Paribas sees headwinds to reverse for ingredients cos
21/11/2023 11:23
** In a note on ingredients companies, Exane BNP Paribas
shares an upbeat view on the sector, saying that while 2022-23
have been "years to forget," factors like destocking, inflation
and rising rates are set to reverse
** The brokerage says that although Food and HPC (home and
personal care) inventory levels remain elevated compared to
historical levels, it is now being reflected in consensus
estimates
** The broker views the sector set to deliver solid top- and
bottom-line growth in FY24
** Its preferred stocks are Symrise SY1G.DE , Kerry
KYGa.I and IFF IFF.N
** Exane still likes DSM-Firmenich DSFIR.AS , but cuts it
to "neutral" from "outperform", with 2024 likely being another
year of restructuring and integration for the company
** Its bottom picks are AAK AAK.ST , with recommendation
downgraded to "underperform" from "neutral," and Novozymes
NZYMb.CO /Chr Hansen CHRH.CO ("underperform")
(Reporting by Elviira Luoma)
((elviira.luoma@thomsonreuters.com))