(News Bulletin 247) – Credit Suisse reiterates its ‘outperformance’ opinion on Verallia while raising its price target from 39 to 46 euros, pointing to ‘positive outlook on the improvement of the price/cost spread in a slowdown environment volumes’.

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

According to him, Verallia trades at a discount of 24% compared to its peers, which is “unjustified given its superior operating performance, its debt below the sector average and an attractive dividend yield of 4 ,1%’.

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