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2026-02-16 15:22:50
[Berenberg Downgrades dsm-firmenich to Hold, Citing Further Downgrades in Earnings Forecasts] ⑴ Berenberg Bank downgraded chemical manufacturer dsm-firmenich from "Buy" to "Hold," citing further downward revisions in earnings forecasts. The broker stated, "We believe weak US consumer confidence and foreign exchange headwinds mean that further downward revisions in consensus earnings forecasts are inevitable." ⑵ Berenberg noted that since its merger with Firmenich, the group's Flavor, Texture & Health division, which supplies flavors and ingredients, has outperformed the broader industry. However, the institution noted that this division's advantage is insufficient to offset the downward revisions in valuations across the broader consumer sector and negative macroeconomic pressures. ⑶ Berenberg lowered its target price by nearly 15% to €70 per share. ⑷ From a market perspective, Berenberg's downgrade reflects the dual pressures facing the European consumer goods and chemical industry: weak demand and exchange rate pressures. Even strong performance in individual businesses is unlikely to reverse the overall trend. ⑸ The market should pay attention to whether US consumer confidence data weakens further and the impact of euro/dollar exchange rate fluctuations on the profitability of European export companies.
