Credit Suisse reiterates its 'outperform' rating on Verallia and raises its target price from €39 to €46, citing a 'positive outlook on the improvement of the price/cost spread in an environment of slowing volumes'.

The broker raises its 2023 and 2024 estimates by an average of 12% for net income and 11% for EBITDA, and adopts a higher VE/EBITDA 2023 peer multiple applied to its valuation framework (7.5x vs. 7.1x).

In his opinion, Verallia is trading at a 24% discount to its peers, which is 'unjustified given its superior operating performance, lower debt than the sector average and attractive dividend yield of 4.1%'.

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