(CercleFinance.com) – Verallia shares recorded one of the biggest increases in the SBF 120 index on Wednesday, thanks to a note from Berenberg, which was more positive about the French glass specialist and the sector. in general.
The research office thus raises its recommendation on the stock to ‘buy’ versus ‘hold’, with a price target reduced from 45 to 41 euros.
After a six-month period considered ‘difficult’ for the glass packaging market, the analyst says he expects ‘record’ results and margins for the sector in 2023.
In its study, Berenberg explains that it is raising its advice on Verallia due to its ‘particularly attractive’ valuation marked by an Enterprise Value/Ebit ratio of 7x to 8x, while its volumes hit a low in the third quarter.
The intermediary also mentions a scenario according to which the group could set an Ebitda target of more than one billion euros for 2024, compared to 1.1 billion in 2023, where the market is counting on a much more marked decline. .
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