VERALLIA : Berenberg downgrades its recommendation
The analyst points out that, since he raised his recommendation to 'buy' in 2020, the stock has generated a total return (including dividend) of 60%, thanks in particular to 'impressive' organic growth.
However, the intermediary expects the market to focus more on the normalization of profit margins and a tougher competitive environment.
While Berenberg continues to like the company and its 'attractive' stock market valuation, it considers the consensus forecast for 2024 to be over-ambitious, with forecasts some 15% below consensus - a gap it considers too wide to justify a buy recommendation on the stock.
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