Syensqo 3Q26: More progress in Materials

If Materials continues to grow, we think the Syensqo stock will continue to work. And we come away reassured from this quarter on Materials' growth momentum. For the second quarter since the December 2023 listing, Specialty Polymers grew organically, and Composites continued their strong momentum (+27 organic growth). Despite the c. +77% share price rally since the big reset, we are confident that there is further upside and reiterate our Outperform rating. Our 2027 Group Adj. EBITDA estimate of EUR 1,280m sits +2.4% above Bloomberg consensus. Delivering our 2027 estimates should therefore support further re-rating as investors gain confidence in the sustainability of Materials growth. Based on our reverse DCF, we also think the market still continues to embed relatively modest long-term growth expectations. The ongoing strategic review of P&C could provide an additional source of value creation as our valuation does not assume very aggressive multiples for the division (7.0x NTM EV/EB