Lars Kjellberg, an analyst from Stifel Nicolaus, maintained the Buy rating on Verallia SAS (VRLA – Research Report). The associated price target is €40.25.
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Lars Kjellberg has given his Buy rating due to a combination of factors that highlight Verallia SAS’s financial prospects and market positioning. One of the primary reasons for this optimistic outlook is the company’s demonstrated ability to maintain stable margins despite various market disruptions over the past five years. Verallia has managed to achieve annual cash cost reductions and has implemented a disciplined energy hedge program, which is expected to become advantageous as energy costs rise.
Additionally, a potential bid from the largest shareholder, BWGI, has sparked interest in the company’s stock, indicating a recognition of Verallia’s underlying value. The proposed tender offer price of €30 per share is seen as opportunistic and undervalues the company’s true potential, which is reflected in Kjellberg’s fair value price target of €40.25. The anticipation of improving volumes and margins in 2025 further solidifies the Buy rating, as Kjellberg believes these factors will contribute positively to Verallia’s earnings outlook.
In another report released on February 3, Kepler Capital also maintained a Buy rating on the stock with a €38.00 price target.