Verallia: Berenberg downgrades stock
(CercleFinance.com) - On Friday, Berenberg downgraded its recommendation on Verallia shares from 'buy' to 'neutral', with a target price reduced from E36 to E30, advising investors to be cautious on the sector in the run-up to FY 2025.
In its report on 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 between 20% and 30% since the beginning of 2024, resulting in a decline of the same magnitude in the sector's shares, he explains.
Saying that it does not foresee a strong recovery in volumes in 2025, the broker downgtrades Verallia, although maintains its buy rating on Spain's Vidrala.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its report on 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 between 20% and 30% since the beginning of 2024, resulting in a decline of the same magnitude in the sector's shares, he explains.
Saying that it does not foresee a strong recovery in volumes in 2025, the broker downgtrades Verallia, although maintains its buy rating on Spain's Vidrala.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.