Synthomer Share Price (SYNT)

Synthomer Plc (SYNT:LN) (SYHMY) PT Raised to GBP3.75 at Berenberg

Quote from RNS:

“Continuing Group volumes were at their highest levels since Q2 2022.”

This sentence alone will send us to 450 by end of May. I know ridiculous statement but let’s wait and see.. counting down 15 trading sessions to go….

Hi GMHK - I don't really know what price to expect for Synthomer in the short term. I can't give you a number. If I had to - I could only give you a range - say 250p to say 350p. There is no calculation behind this, no chart, just a guess.

Like you I am an original (pre RI) holder of Synthomer but I buy shares only on a long-term basis. I have various criteria for my investments including that I hold a limited number of investments (currently 8 shares) and I invest in established technology companies e.g. in Pharma, defense, and precision instruments. Synthomer was my chemical industry choice. I chose them because I felt their planned product focus was interesting, and my very basic research indicated they were key players in several interesting continuing markets. However, and maybe like you, I underestimated the impact of the Eastman purchase - its timing, the price paid, the operational issues etc. I now consider Synthomer a "good" investment - for which I have unfortunately overpaid.

I have of course bought more shares in Synthomer through the RI and after, because I still believe in the company. I believe the shares have a large upside potential but accept that this will not happen until volumes return to the chemical sector - and if that does not happen in the next few years, Synthomer could be in trouble again. But as far as I can see the management are cognisant of the risks and have taken reasonable steps to cover them and prepare the company for the upturn. To me the risk reward outlook is favourable particularly if they can sell more non-core operations.

Lastly, as to a future (mid-term) share price - again I don't have a calculated timeframe or number ... but as an indicator ... I am expecting a wait of say 2 years (+?) - I don't see economies improving in a shorter timeframe - and a price north of £7 (back of the envelope calculations based on previous share prices, information in the RI documentation and competitor share prices - all very rough stuff) as indicators.

Regards

I guess, it’s stock market.. sometimes there are things you can’t justify or explain. Technical analysis is kind of art in itself.

Hope it gets to your 750p target at some point 🚀🤞

GMHK - you stated you were confused why people were selling. The simple answer is that at a higher price/valuation the stock is closer to people’s targets. So it’s really not that confusing, is it? While I can understand holding while a stock reacts to a new and more positive data point, I really can’t see anything more positive in todays update that justifies moving your price target from 350 to 450. But hey ho, to each their own… I have a 3 year price target of 750p+, if it gets there quickly I’ll be very happy. ATB