Synthomer Share Discussion Threads

[philanderer] 09/8/2019 12:54

9th aug Credit Suisse neutral tp 370p
8th aug Berenberg buy tp 360p


Berenberg lowers target price on Synthomer

Analysts at Berenberg reiterated their 'buy' rating on speciality chemicals maker Synthomer on Thursday following the group's "robust" second-quarter results.

Berenberg praised Synthomer for its "pleasingly uneventful" first-half results in what it labelled a "difficult period" for the chemicals sector.

"Shares are now well into their fifth year of continued improvement in PBT, and the valuation would imply a magnitude of downgrades that are simply not materialising," said Berenberg.

The German bank said Synthomer's adjusted pre-tax profits of £70.0m appeared to have been "broadly in line with expectations" and highlighted that "robust margins" in nitrile latex seemed to have offset the impact of recent insolvencies in the paper industry, a key user of styrene-butadiene.

However, the broker lowered its target price on the group's shares to 360.0p from its previous 470.0p mark on the back of Synthomer's recently announced rights issue, higher pensions liability and lower estimates for its core business.

Their lower estimates for the company's sales and earnings mainly reflected the purchase of Omnova and assumed a 1 December transaction close.

The analysts "substantially" reduced their margin and volume estimates for Synthomer's styrene-butadiene rubber latex business to reflect the ongoing weakness in the paper industry and also trimmed their volumes forecasts for the coatings-orientated functional solutions segment, with the net underlying downgrade equating to roughly 4% of underlying earnings.

Nonetheless, said Berenberg: "This pales into insignificance compared with some of the cuts to heftier estimates for industrial chemicals and is clearly at odds with robust, synergy-driven earnings growth and a single-digit P/E."

[philanderer] 07/8/2019 09:23

7th aug Deutsche buy tp 375p cut from 500p

[riostroy] 07/8/2019 08:12

And going down again

[philanderer] 06/8/2019 10:48

6th aug Peel Hunt 'buy' tp 450p cut from 500p

[philanderer] 06/8/2019 10:03

Interim dividend 4.0p per share reflecting an 8.1% increase 👍

[clanger66] 06/8/2019 09:00

You need to look at the details rather than the headline. Yes some parts of the business have faced challenges but part of the reason seems to be down to the sale of their interest in the groups Dubai operations and the Malaysian rubber and resins production line closures in 2018. The difference in operating profit looks to be mainly down to special items so overall the results don't look as bad as feared in my view.

[philanderer] 06/8/2019 00:14

Tin hats on again tomorrow FTSE futures -140 pts at the moment.

[grahamnash] 05/8/2019 13:56

Hi. I'm wondering about getting into SYNT in a small way after results tomorrow (despite warnings to the contrary, above!). I notice that the borrowing limit has been raised to 1.5 billion at recent Extraordinary Gen Meeting. Anyone know the reason for this??
Cheers.

[riostroy] 01/8/2019 11:02

Now all who joined new placing become fooled. They all could have bought now.

[philanderer] 31/7/2019 09:22

Maybe those who took up the 5.5million shares in rights issue rump placing yesterday at 302.9p may have had a nod and a wink re the interims ? ;-)

[riostroy] 31/7/2019 03:38

I am afraid SYNT intensively issued new shares in such a rush before interims because the trading is bad.

[philanderer] 30/7/2019 17:05

Yes, I added 10% at 307p too.

edit: Interims next tuesday.

[gilesy] 30/7/2019 13:20

bought more today at 3.09
good long term hold

[philanderer] 30/7/2019 11:42

RNS:

Following the announcement made earlier today by the Company regarding the number of valid acceptances received under the 1 for 4 rights issue announced by the Company on 3 July 2019 (the "Rights Issue"), the Company announces that Barclays Bank PLC, Canaccord Genuity Limited, HSBC Bank plc and Citigroup Global Markets Limited (the "Underwriters"), as agents for the Company, have procured subscribers for the remaining 5,529,577 New Synthomer Shares for which valid acceptances were not received and 967 New Synthomer Shares representing fractional entitlements by 11.00 am on 29 July 2019 (representing approximately 6.5 per cent. of the New Synthomer Shares) at a price of 302.9 pence per New Synthomer Share.

[riostroy] 30/7/2019 11:41

A falling stone

[philanderer] 30/7/2019 10:25

(Alliance News) - Chemicals business Synthomer PLC on Tuesday said it has received 93% acceptances for a previously announced rights issue, part of a major acquisition.

Synthomer announced the rights issue, worth GBP204 million, at the start of July, following the USD824 million acquisition of fellow specialty chemicals firm OMNOVA Solutions Inc.

The 4-for-1 rights issue, priced at 240 pence a share, was accepted by 79.4 million of Synthomer shares, 93% of those under the offer. The underwriters, Barclays Bank PLC, Canaccord Genuity Ltd, HSBC Bank PLC, and Citigroup Global Markets Ltd, have until 1700 BST on Wednesday to find subscribers for the remaining shares.

If they do not, the underwriters will take them up themselves.

[philanderer] 30/7/2019 09:39

94% rights take up...It is expected that dealings in the New Synthomer Shares, fully paid, will commence on the London Stock Exchange's main market for listed securities from 8:00 am on 30 July 2019.

[philanderer] 26/7/2019 17:54

Stack of nil-paid rights sold by non-exec this week. Could be to finance purchase of new ones.

[philanderer] 16/7/2019 14:49

I'm with Selftrade and received an email yesterday saying how much would be deducted from my account if I wanted to take up my Rights. Deadline is 29th july for money to be taken out.

Epic for nil paid is SYNN.L

[jaws1] 16/7/2019 14:49

Had to phone IGindex today to take up rights