On Thursday, UBS analyst from the financial firm raised the price target for DSM-Firmenich AG (DSFIR:NA) to €129.00, up from the previous €122.00, while maintaining a Buy rating on the stock. The adjustment comes as the analyst projects a higher adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the second quarter of 2024.
The analyst expects the Q2 adjusted EBITDA to reach €501 million, a 1% increase from the earlier forecast of €496 million. This estimate is approximately 3% above the consensus of €488 million from Visible Alpha. The anticipated EBITDA margin is 15.9%, which is higher than the consensus estimate of 15.7% and reflects an improvement from the 15.1% margin reported in the first quarter.
In terms of sales, the analyst's projection is 1% higher than the consensus, with an estimated €3,147 million compared to the market's expectation of €3,107 million. The forecast for the company's group organic sales growth (OSG) in Q2 is 4.6%, which includes a 6.0% increase in volume and a 1.4% decrease in pricing. This growth rate is 60 basis points above the consensus model of 4.0%, which comprises a 4.6% volume increase and a 0.6% decrease in pricing.
The updated financial estimates by UBS come ahead of DSM-Firmenich's scheduled Q2 results announcement on July 30, 2024. The summary of these estimate changes has been detailed by the analyst in a report.
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