DSM-Firmenich Vitamin price recovery raises chances of successful ANH exit

A solid recovery of vitamin prices prompt us to raise our Animal Nutrition & Health (ANH) adjusted EBITDA forecasts for 2024-26 by 9-17% with our group forecasts over the period revised upwards by 1.5-3.9%. More importantly, we believe that the vitamin price recovery significantly increases the chances of a successful exit out of ANH with our exit price forecast increased from € 3.0-3.5bn to € 3.9-4.4bn, which corresponds to an EV/EBITDA25e multiple of 9-10x. We appreciate the core customer oriented businesses of dsm-firmenich for the broad portfolio and market leading positions. We maintain our Accumulate rating whilst increasing our target price from € 120 to € 125.