MS favours 'structural winners' in ingredients, cuts DSM, lifts Givaudan

International Flavors & Fragrances

06/01/2026 08:00

** Morgan Stanley states its preference for what it calls "structural winners" in the ingredients sector, seeing a growing divide between portfolio winners and laggards

** The brokerage says the sector's "critical 5% LFL growth hurdle rate may still be out of reach" in 2026 amid a deflationary backdrop and a modest baseline recovery

** MS downgrades Swiss ingredients maker dsm-firmenich DSFIR.AS to "Equal-Weight" from "Overweight", citing a "full" valuation and limited earnings prospects

** "A key (industry) trend for 2026 and beyond is that we expect a decisive shift towards kitchen-identifiable and science-backed health-enhancing solutions tied to longevity," says MS

** MS sees IFF IFF.N, Givaudan GIVN.S, Symrise SY1G.DE and Novonesis NSISb.CO as particularly favourably exposed to this trend

** Broker upgrades peer Givaudan to "Equal-Weight" from "Underweight", noting its valuation is now below long-term averages with limited downside risk

** "We expect Fragrance & Beauty to outperform Taste segments in 2026," it adds

COMPANY
RATING
OLD RATING
PT
OLD PT
Givaudan GIVN.S
Equal-weight
Underweight
CHF 3,200
CHF 3,200
dsm-firmenich DSFIR.AS
Equal-weight
Overweight
EUR 81
EUR 98
Symrise SY1G.DE
Overweight
Overweight
EUR 102
EUR 102
IFF IFF.N
Overweight
Overweight
USD 88
USD 88
Novonesis NSISb.CO
Overweight
Overweight
DKK 560
DKK 560
Tate & Lyle TATE.L
Underweight
Underweight
399p
399p

 (Reporting by Dimitri Rhodes in Gdansk)

 ((dimitri.rhodes@thomsonreuters.com))