Analysts at two leading investment banks have signaled greater confidence in Givaudan AG as the Swiss flavors and fragrances maker approaches its first-half 2026 results due on July 23.
On Tuesday, J.P. Morgan placed Givaudan on Positive Catalyst Watch, citing expectations for an acceleration in second-quarter organic growth. Separately, Deutsche Bank raised its rating on the stock to Buy from Hold and lifted its price target to CHF3,300 from CHF3,000.
J.P. Morgan analyst Celine Pannuti, CFA, adjusted her Q2 like-for-like growth forecast for Givaudan to 4.1%, up from a prior estimate of 3.4%. That revised forecast sits above the consensus estimate of 3.1% by one full percentage point.
Pannuti described the first quarter as a trough in performance, noting sequential acceleration in volumes and projecting that momentum should continue. She positioned the Q2 forecast within Givaudan’s stated medium-term organic growth range of 4% to 6%, and emphasized that improving dynamics should help demonstrate the quality of compounding growth even against what she characterized as a subdued end-market demand backdrop.
Deutsche Bank’s more constructive stance followed its Access Global Consumer Conference, where analyst Virginie Boucher-Ferte convened management teams from seven ingredient companies - Croda, dsm-firmenich, Givaudan, IFF, Kerry, Novonesis and Symrise. According to Boucher-Ferte’s write-up, the company representatives provided generally reassuring commentary, and Q2 demand conditions had held up after a step-up in March.
Within the set of companies covered, Deutsche Bank said it is the most above Q2 profit consensus on Givaudan. The broker also highlighted Croda, for which it raised the price target to 3,200 pence from 3,000 pence while maintaining a Hold rating, as another name where its Q2 profit view sits above consensus.
J.P. Morgan provided a more granular view of the company’s business lines. In Taste & Wellbeing, the bank forecast Q2 like-for-like growth of 1.8%, citing an easier year-on-year comparative and improvements in Asia-Pacific as well as Sub-Saharan Africa, Middle East and Asia regions. J.P. Morgan expects the Fragrance & Beauty division to outperform, forecasting 6.3% like-for-like growth driven by resilient consumer fragrances versus an easier comparative period. The broker noted Fine Fragrance should moderate slightly but remain resilient, and that the drag from fragrance ingredients is expected to ease.
Across the ingredients sector, both banks noted cost pressures from raw materials. Deutsche Bank predicted raw materials inflation would rise but judged the impact to be manageable, saying cost inflation should be passed through relatively quickly and that companies were focused on self-help measures to protect profitability. J.P. Morgan indicated that cost increases for Givaudan are likely to materialize more gradually than previously assumed, and that pricing is expected to step up over time to help offset those costs.
On profitability metrics, J.P. Morgan set its full-year 2026 EBITDA margin estimate for Givaudan at 23.8%, a slight lift from a prior forecast of 23.7%. The broker also raised its earnings-per-share estimates for Givaudan for 2026 and 2027 by 2% and 3%, respectively, after updating its model with recent industry inputs and discussions with the company.
Deutsche Bank pointed to increasing innovation activity across the ingredients sector combined with solid demand as drivers that should generate sequential acceleration in organic sales growth for most companies it follows. Boucher-Ferte wrote that she expects Q2 results to come in above consensus.
Contextual note - Commentary included at times referenced other issuers in the ingredient space as part of the conference discussions, but the specific analyst revisions and forecasts described above apply directly to Givaudan and the brokerages cited.