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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