Buy signal on Givaudan (GIVN-CH)

21/04/2021

We had an Enter Long signal on April 21th 2021, triggered by our system on GIVN -CH, Givaudan the Swiss Flavors & Fragances company.

Givaudan is a CHF35.6 Bn market cap and one of the world's leading producers of flavors and fragrances. Revenue is split between :

- Flavors (55% of sales) intended for the production of savory desserts (38% of turnover; prepared meals, snacks, soups and sauces, meats and poultry), drinks (32%; sodas, fruit juices, drinks instant), confectionery (17%) and dairy products (13%);

- Perfumes (45% of sales) intended for the manufacture of cosmetic products and consumer products (hygiene products, household products, etc.).

Givaudan is a quality growth business with a defensive profile as more than half of the business is derived from Food & Beverage, while the other part is derived from the Household goods industry.

The EPS growth per year reach 10% on average, thanks to the operating margin ramping up (16.4% expected in 2021) coupled with mid single digit organic growth. Givaudan also proceeds to selective acquisitions on a regular basis and currently offers a 1.7% dividend yield.

Short term catalyst :acquisitions, India exposure.

This signal looks consistent with the Major Bullish Trend in the European Food & Beverage sector.