GVDBF - Givaudan: Exceptional Yet It Remains Priced Beyond Reach

2024-02-13 07:21:19 ET

Summary

• Givaudan reported solid 2023 results, with total sales declining 2.8% but showing healthy growth on a like-for-like basis.
• The Fragrance & Beauty segment performed well, while the Taste & Well-being segment was weaker.
• Givaudan operates in an attractive industry with strong competitive advantages, but the stock is considered overvalued.

A little over a year ago, we started covering Givaudan (GVDBF)(GVDNY), highlighting its strong competitive moat and the attractive characteristics of its business model and industry. We gave it a 'Hold' rating given that we saw it as slightly overvalued. However, that didn't stop the shares from outperforming the market, delivering a return of over 37% since then, compared to roughly 26% for the S&P 500 index ( SPY )....

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