Verallia: share down as Berenberg more cautious
(CercleFinance.com) - Verallia shares fell on the Paris Bourse on Friday, following a recommendation downgrade by Berenberg, which advises investors to be cautious about the sector ahead of 2025.
In a note devoted to glass container manufacturers, the analyst points out that demand has not recovered as much as he had hoped over the first nine months of the year, leading to pressure on prices.
Earnings forecasts for the sector have been revised downwards by 20% to 30% since the start of the year, resulting in a similar fall in sector stocks, it explains.
Saying that it does not foresee a strong recovery in volumes in 2025, the intermediary downgrades its recommendation on Verallia from 'buy' to 'neutral', with a price target reduced from E36 to E30, while maintaining its 'buy' recommendation on Spain's Vidrala.
In Paris, Verallia shares are down around 3% this morning, posting one of the biggest falls in the SBF 120 index (-0.3%). The share price has fallen by more than 21% YTD.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In a note devoted to glass container manufacturers, the analyst points out that demand has not recovered as much as he had hoped over the first nine months of the year, leading to pressure on prices.
Earnings forecasts for the sector have been revised downwards by 20% to 30% since the start of the year, resulting in a similar fall in sector stocks, it explains.
Saying that it does not foresee a strong recovery in volumes in 2025, the intermediary downgrades its recommendation on Verallia from 'buy' to 'neutral', with a price target reduced from E36 to E30, while maintaining its 'buy' recommendation on Spain's Vidrala.
In Paris, Verallia shares are down around 3% this morning, posting one of the biggest falls in the SBF 120 index (-0.3%). The share price has fallen by more than 21% YTD.
Copyright (c) 2024 CercleFinance.com. All rights reserved.