(News Bulletin 247) – Berenberg announced on Tuesday that it had downgraded its recommendation on Verallia, which went from ‘buy’ to ‘hold’ with a price target reduced from 45 to 42 euros, believing that it was time to ‘take a break ‘ after the recent rise in value.
The analyst indicates that, since he raised his advice to buy the stock in 2020, it has generated a total return (including the dividend) of 60%, thanks in particular to a ‘impressive’ organic growth.
But the intermediary expects the market to focus more now on normalizing its profit margins and toughening the competitive environment.
While he says he continues to appreciate the company and its ‘attractive’ stock market valuation, Berenberg also considers the consensus for 2024 too ambitious and displays forecasts around 15% lower than those of the consensus, a difference that he deems it too important to still justify a buy recommendation on the stock.
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