(News Bulletin 247) – Bank of America announced Thursday that it has resumed coverage of Verallia shares with a buy recommendation and a target price of 43 euros.
In a research note, the American bank points out that the European leader in glass packaging is benefiting from long-term buoyancy with the end of plastic products, a market estimated at 300 billion dollars.
According to the firm, the demand for glass packaging should grow by 2% to 3% per year in Europe.
BofA, which highlights Verallia’s ‘darling’ status with regard to ESG issues, says it anticipates Ebitda 6% to 8% higher than the consensus for the 2023 and 2024 financial years.
The bank adds that the Verallia share is traded on the basis of an Enterprise Value/Ebitda ratio of around 4.7x by 2024, showing a discount vis-Ã -vis its peers (6. 5-7x) despite higher margins.
BofA says it has added the stock to a list of best investment ideas for small and mid caps.
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