DSM-Firmenich FIRST LOOK: 2Q adj EBITDA +26% and a 3% beat, FY guidance upped

2Q adj EBITDA jumped by 26% y/y to € 513m and beat our and CSS forecasts by c 3%, being supported by synergies/savings and solid organic sales growth of 7%. Going forward, we anticipate more synergies/savings as well as support from improving vitamin prices. Dsm-firmenich increased FY24 adj EBITDA guidance from at least € 1.9bn to c € 2bn with our and CSS forecasts already in line with the new guidance. We remind that the recently announced mid term financial targets for the new scope (ie ex ANH) are similar to the targets of the current group, ie 5-7% organic sales growth and an 22-23% adjusted EBITDA margin, which represent a sizeable step-up to the FY23 margin level of c. 18% (ex ANH). We still appreciate dsm-firmenich for its broad portfolio and market leading positions. The upcoming separation of the Animal Nutrition & Health business can be a catalyst to unlock value and we maintain our Accumulate rating and € 120 target price.