On Wednesday, Verallia shares posted one of the strongest gains in the SBF 120 index, thanks to a note from Berenberg, which is more positive about the French glass specialist and the sector in general.

The research firm has raised its recommendation on the stock to 'buy' from 'hold', with a price target reduced from 45 to 41 euros.

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 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 expecting a much sharper decline.

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