Barry Callebaut: share price falls, UBS says 'more cautious
The stock is currently losing 3.2%, falling to its lowest level since 2018.
In a note, UBS said it was taking a "more cautious" view of the stock, downgrading it from "buy" to "sell", with a price target lowered from 1,900 to 1,180 Swiss francs.
The study dwells on the recent surge in cocoa bean prices, against a backdrop of unfavorable weather, a factor which should be reflected in chocolate prices and penalize Barry's sales over the 2024-2025 period, according to the analyst.
With a PER of 18x, the share's valuation is however too stretched to support half-hearted growth and uncertain cash flow, judges the intermediary.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Go to the original article.
Contact us to request a correction