Buy Rating Justified by Verallia SAS’s Resilience and Growth Potential Amid Market Challenges

Stifel Nicolaus analyst Lars Kjellberg has maintained their bullish stance on VRLA stock, giving a Buy rating on February 20.

Lars Kjellberg’s rating is based on several compelling factors that highlight Verallia SAS’s potential for growth and stability. Despite the slower-than-expected recovery in the market, Verallia has shown resilience with a notable year-on-year earnings increase in the fourth quarter. The company’s strong performance was driven by cost savings and increased activity contributions, which more than compensated for unfavorable price/mix and foreign exchange impacts.
Moreover, Verallia’s ability to maintain stable and competitive margins over the past five years, even amid market disruptions, positions it favorably against its peers. Anticipated improvements in margin progression, coupled with potential cost savings and favorable energy trends, suggest a promising outlook for 2025. Additionally, the prospect of a tender offer from BWGI provides near-term support for the stock price. Collectively, these factors justify the Buy rating, reflecting confidence in Verallia’s strategic direction and operational resilience.

In another report released on February 20, Kepler Capital also maintained a Buy rating on the stock with a €35.00 price target.