Jefferies analyst Fabian Piasta maintained a Buy rating on Befesa S.A. today and set a price target of €37.00.
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Fabian Piasta has given his Buy rating due to a combination of factors, including Befesa S.A.’s strong third-quarter performance and positive outlook. The company demonstrated a return to volume growth, with earnings improving thanks to a favorable price and cost environment. This resulted in a 27% year-over-year increase in adjusted EBITDA, reaching €62 million, which aligns with consensus expectations and reflects a robust margin of 21.3%.
Furthermore, revenues were primarily driven by a significant recovery in Steel Dust volumes, which increased by 24% year-over-year, as maintenance shutdowns were mostly completed in the first half of the year. Despite some foreign exchange headwinds, the overall solid LME Zinc price environment contributed positively. With management confirming guidance for continued EBITDA growth and maintaining solid visibility on volumes and inventory levels, the outlook for Befesa S.A. remains promising.
In another report released on October 28, UBS also maintained a Buy rating on the stock with a €44.00 price target.