Stifel reaffirms its 'Hold' recommendation on Givaudan and raises its target price from CHF 3,500 to CHF 3,800, in the wake of estimates raised ahead of the quarterly trading update, based on solid development of volumes and margins.

After a solid end to 2023, the broker expects the Swiss flavors and fragrances supplier to achieve over 7% organic growth and a further 110 basis points margin expansion in 2024.

While it sees limited upside potential for the valuation, Stifel believes that Givaudan "will maintain its valuation premium over its peers, given its high profitability and free cash flow generation".

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