FRANKFURT (dpa-AFX) - The confident outlook of several analysts on Südzucker's upcoming financial year fueled the rally of the shares on Thursday. The papers of the food group rose by a good three percent to 17.12 euros by lunchtime. In the small cap index SDax, they were only outperformed by the bioethanol subsidiary Cropenergies, whose shares rose by around 4 percent, and by Grenke.

Alexander Neuberger of Bankhaus Metzler issued a recommendation for Südzucker and raised the price target to 22.40 euros. This makes Neuberger by far the most optimistic analyst for the company and gives the shares further upside potential of a good 30 percent. Neuberger expects Südzucker to benefit from the significantly improved prospects on the European sugar market. Prices for sugar contracts rose faster than costs.

Virginie Boucher-Ferte from Deutsche Bank provided additional tailwind. Many influences for the new 2023/2024 financial year (from March 1) cannot yet be estimated, she said. However, Südzucker's management is confident and rising profits are possible in a variety of scenarios. Boucher-Ferte raised its price target to 17 euros.

Südzucker had already convinced investors in mid-December with its outlook for the coming financial year. Since then, the shares have gained almost a quarter. The food group expects profits to continue to rise in 2023/24, and sales are also expected to increase again. Südzucker is counting on the energy supply situation stabilizing and the company being able to continue to benefit from the energy prices that were secured before the start of the Ukraine war./niw/la/mis