Syensqo: Initiating Coverage With EUR 115 Fair Value Estimate and Narrow Moat Rating

We are initiating coverage of Syensqo with a EUR 115 fair value estimate, narrow moat rating, Medium Morningstar Uncertainty Rating, and Standard Morningstar Capital Allocation Rating. Syensqo’s spinoff from Solvay was completed in December 2023. The new firm is a leader in high-performance polymers, composite materials, and specialty surfactants. Its broad product offering benefits from megatrends such as "lightweighting" (using lighter materials to improve fuel-efficiency) for aerospace and autos, electrification, and sustainable sourcing.