Bernstein Research has maintained its 'Underperform' rating on Givaudan AG with a price target of 2,886 Swiss francs, citing concerns over the sustainability of the company’s recent above-average growth.
Analyst Victoria Nice, based in New York, highlighted that key growth drivers for Givaudan in recent years may be losing momentum, creating headwinds for the stock. The downgrade contrasts with a more optimistic outlook for competitor DSM-Firmenich, which Nice expects to undergo a multi-year recovery in its fragrance business—a segment the market has yet to fully price in.
The rating and target were first published on August 17 and subsequently distributed via dpa-AFX on August 18. The research firm did not adjust the price target despite the downgrade, reflecting a cautious stance on Givaudan’s near-term prospects.
Givaudan’s shares trade under the ticker GIN (WKN: 938427, ISIN: CH0010645932) on the Swiss market. Bernstein’s assessment underscores the growing divergence in performance expectations between the two fragrance industry leaders as DSM-Firmenich’s restructuring efforts begin to take shape.
