In a report released today, Constantin Hesse from Jefferies maintained a Hold rating on verbio Vereinigte BioEnergie, with a price target of €9.80.
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Constantin Hesse has given his Hold rating due to a combination of factors affecting verbio Vereinigte BioEnergie’s financial performance. The company’s preliminary EBITDA for FY24/25 was significantly impacted by impairment allowances on inventories, largely due to the lack of a short-term recovery in GHG quota prices, resulting in a figure of €14 million, which was below both the company’s guidance and market expectations.
Additionally, Verbio faced a substantial non-cash impairment of approximately €66 million related to its straw biomethane plant in Iowa, attributed to lower earnings potential and unexpectedly high investment costs from the COVID era. Despite these challenges, Verbio’s core biomethane operations remain robust, and the company is actively seeking alternative feedstocks to enhance the viability of its Iowa plant. Furthermore, Verbio’s financial health remains stable, with net financial debt well below its self-imposed ceiling, supporting the Hold rating.
In another report released on July 29, Deutsche Bank also maintained a Hold rating on the stock with a €15.00 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0NLY in relation to earlier this year.