Synthomer tumbled on Monday after Morgan Stanley downgraded the shares to ‘underweight’ from ‘overweight’ and slashed the price target to 400p from 568p.
The bank cited a sharp deterioration in the supply outlook and associated risk of faster-than-expected normalisation in earnings.
“We believe this, combined with volume risks, a management transition and rising leverage, leaves risks skewed to the downside,” it said.
At 1000 GMT, the shares were down 8.4% at 435p.
