Exane BNP Paribas sees headwinds to reverse for ingredients cos

Novozymes A/S

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))