Symrise AG (SY1) fell the most in almost 19 months after Liberum Capital cut its recommendation on the fourth-biggest maker of fragrances and flavors because weakened emerging-market currencies may hurt revenue.
The stock of the Holzminden, Germany-based company dropped as much as 5.9 percent, the biggest intraday fall since March 2012, to 29.55 euros. Trading volume was more than triple the three-month daily average. Adam Collins and Sophie Jourdier, analysts at Liberum Capital, today cut their recommendation on Symrise to sell from hold, saying the company has an above-average share of sales from emerging markets.
Symrise gets 48 percent of its sales from emerging markets, while its biggest competitor, Givaudan SA (GIVN), gets 44 percent, the Liberum analysts said in a note. Vernier, Switzerland-based Givauden yesterday reported its first decline in sales for at least six quarters on a year-on-year basis, as emerging-market currencies from Brazil to India dropped against the Swiss franc.
“Foreign exchange is taking a big hit,” Patrick Lambert, an analyst at Nomura International Plc., said by telephone today. “These guys are pretty exposed to emerging markets and Latin America in particular. At Givaudan, it was worse than expected.” Lambert has a neutral recommendation on Symrise.
Symrise’s stock was down 3.6 percent at 30.27 euros as of 3:08 p.m. in Frankfurt. It has gained 12 percent this year, boosting the company’s market value to 3.6 billion euros ($4.9 billion). The flavor maker reports quarterly earnings on Nov. 5.
This year, the Indian rupee has fallen about 11 percent against the euro, while the Brazilian real has dropped 12 percent and the South African rand has declined 15 percent.
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