Jefferies analyst Martin Comtesse maintained a Buy rating on Befesa S.A. (BFSA – Research Report) today and set a price target of €44.00.
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Martin Comtesse has given his Buy rating due to a combination of factors including Befesa S.A.’s strong financial performance and strategic positioning. The company reported a significant year-over-year increase in sales, driven by improved zinc and aluminum prices along with higher volumes, which resulted in a robust adjusted EBITDA. This performance aligns well with market expectations and the company’s guidance for the fiscal year.
Additionally, Befesa has demonstrated effective cash conversion, which has contributed to a reduction in net leverage, with plans to decrease it further. The company’s management has indicated potential for strong double-digit EBITDA growth, supported by efficiency improvements and cost optimization efforts in both China and the US. Furthermore, anticipated increases in EAF volumes are expected to enhance utilization and profitability, underpinning the positive outlook for Befesa’s future growth.
In another report released on February 14, Hauck & Aufhaeuser also maintained a Buy rating on the stock with a €35.00 price target.