Verallia: Berenberg downgrades, no longer recommends buying

(CercleFinance.com) - On Friday, Berenberg downgraded its recommendation on Verallia shares from 'buy' to 'neutral', with a price target reduced from 36 to 30 euros, advising investors to be cautious on the sector as fiscal 2025 approaches.


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 between 20% and 30% since the beginning of the year, 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 intermediary lowers its recommendation on Verallia, but maintains its buy opinion on Spain's Vidrala.

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