Synthomer Share Discussion Threads

[philanderer] 25/10/2019 09:10

Not a surprise really. ZTF gave a similar profit warning a few weeks ago.

Be back up to 300p in two years easily.

[philanderer] 04/10/2019 00:24

Zotefoam’s share price has fallen a whopping 36% in early morning trade to 340p as the specialist chemicals firm warned that sales of polyolefin foam, its biggest-selling product, are likely to be £6m below market forecasts

[philanderer] 03/10/2019 12:10

Looks like the warning on polyolefin from ZTF ... common to SYNT.

[philanderer] 03/10/2019 12:01

Canaccord this morning saying 'buy'... tp 550p

[philanderer] 03/10/2019 11:59

buywell, good spot. I think you're bang on , thanks.

[buywell3] 03/10/2019 08:58

Has Zotefoams news hurt this ?

Mmmm

Coming Global Downturn looks the problem

[philanderer] 03/10/2019 08:41

Oh dear...that's dropped way more than just going xd

[philanderer] 02/10/2019 14:39

xd tomorrow morning for ther 4p dividend

[philanderer] 16/9/2019 20:31

Peel Hunt reiterates BUY ,tp 435p cut from 450p

[robow] 15/9/2019 09:21

GREAT IDEAS
10 | SHARES | 12 September 2019

Chemicals firm Synthomer (SYNT) looks very tempting at the current price following a big sell-off over the past year. The firm’s share price dropped from around 530p a year ago to 280p last month and saw the stock trade on nearly its lowest rating in a decade, while its level of debt compared to how much it’s earning is expected to double. But with the business on the cusp of global expansion as it aims to keep up with soaring demand for its products, investors with a long-term view may want to take advantage of the firm’s cheap valuation. The chemicals sector has historically been a good place to invest with significant share price gains over the past decade and occasionally generous dividends. But chemicals companies have been caught up by concerns over a global economic slowdown in the past year, and some in the market think this may feed into weaker demand for chemicals products. Synthomer has tried to expand significantly to keep up with demand for its speciality products, sought after due to many factors such as urbanisation, ageing demographics and stricter legislation. The firm supplies aqueous polymers to companies, which
The company should benefit from capacity expansion and a deal to boost its position in the US and Europe
The outlook is looking brighter for Synthomer
Synthomer is also forecast by analysts at Canaccord and Numis to have a much stronger second half of this year as market conditions are set to improve. That combined with its completed upgrades to facilities in Germany and Malaysia means the firm will have greater capacity to meet demand for its products. Its net debt-to-earnings ratio is expected to increase next year to between 2.2 and 3-times as the Omnova deal is completed. But Synthomer has a clear plan to get this down below 2-times by the end of 2021. Its management team has a disciplined approach to M&A, with a ‘conservative capital’ policy meaning it’s unlikely to ever be reckless in the pursuit of growth.
help create new products and boost the performance of existing ones, such as footwear insoles, condoms, packaging tapes, carpets and waterproofing products. While strong on the consumer side, investors had questioned Synthomer’s growth prospects given its lack of real penetration into the industrial market. But the proposed deal to acquire Omnova Solutions, an American speciality chemicals business operating in sectors like construction and oil and gas, could make the market reappraise Synthomer. As well as the US, Omnova has manufacturing and technical facilities in Europe, Thailand and China. Analysts at UBS believe the acquisition will help Synthomer sell more products in the US, and help it expand its facilities in Europe.

SYNT is also forecast by
analysts at Canaccord and Numis to have a much stronger second half of this year as market conditions are set to improve. That combined with its completed upgrades to facilities in Germany and Malaysia means the firm will have greater capacity to meet demand for its products. Its net debt-to-earnings ratio is expected to increase next year to between 2.2 and 3-times as the Omnova deal is completed. But Synthomer has a clear plan to get this down below 2-times by the end of 2021. Its management team has a disciplined approach to M&A, with a ‘conservative capital’ policy meaning it’s unlikely to ever be reckless in the pursuit of growth.
help create new products

[circles of stone] 14/9/2019 21:16

Can you post the article, please

[philanderer] 13/9/2019 10:10

13th sept Berenberg buy tp 360p

reiterates.

[philanderer] 12/9/2019 11:30

Thanks robow.

[robow] 12/9/2019 08:23

full page write up in Shares Magazine today on 'Best ideas' page
The outlook is brighter for Synthomer
The company should benefit from capacity expansion and a deal to boost its position in UK and Europe

[philanderer] 10/9/2019 11:48

Fingers crossed ;-)

[mallorca 9] 10/9/2019 08:00

Yes, I'm in this one too.
Naked Trader felt this could add £1 by winter.
I also see 2020 being strong.

[philanderer] 09/9/2019 12:38

Good to see continued interest :-)

[philanderer] 05/9/2019 21:49

Creeping up lately. Fingers crossed ;-)

[catsneck2] 26/8/2019 22:12

Fill yer boots computercoders, cheap as chips, I just got some for £3, will buy more if it stays around these levels. Would have been nice to get in at the recent lows but hey ho, hopefully onward and upwards, thres a hell of a lot of shares out there looking historically cheap

[computercoders] 25/8/2019 14:04

Where's the next support if it drops further from here? Just noticed Robbie Burns in this - or was as he publishes his stop levels too. I'm tempted to try £5k.

[philanderer] 16/8/2019 13:34

Tricky one ;-)

UBS upgrading from 'sell' to 'neutral' tp 310p

[dippydodaa] 13/8/2019 16:39

Im trying to value these in the next 12 months, somewhere near 450?

[philanderer] 13/8/2019 13:36

Non-exec director buying 184,000 @ 294p last friday.

[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."