On Wednesday, Berenberg raised its recommendation on Verallia shares to 'buy' from 'hold' on the French glass packaging specialist, on which it is more positive, as it is on the sector in general.

After a six-month period deemed 'difficult' for the glass packaging market, the analyst says he expects 'record' results and margins for the sector in 2023.

In its study, Berenberg raises its recommendation on Verallia due to its "particularly attractive" valuation, marked by an Enterprise Value/Ebit ratio of 7x to 8x, even though its volumes bottomed out in the third quarter.

The intermediary also refers to a favorable scenario in which the Group could set itself an Ebitda target of over €1 billion for 2024, compared with €1.1 billion in 2023, whereas the market is currently forecasting a much sharper decline.

Its price target has been reduced from €45 to €41.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.