Constantin Hesse, an analyst from Jefferies, maintained the Hold rating on verbio Vereinigte BioEnergie. The associated price target is €9.80.
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Constantin Hesse has given his Hold rating due to a combination of factors influencing verbio Vereinigte BioEnergie’s current financial situation and future outlook. Despite a quarterly EBITDA that fell approximately 5% short of consensus expectations, the company demonstrated improved profitability compared to the previous quarter. This improvement was attributed to better spreads in Bioethanol and Biomethane, the absence of one-off charges, and an initial rebound in demand for GHG Quotas.
Furthermore, while net financial debt increased to €204 million from €164 million, this was anticipated, and management expects to reduce it below last year’s level by the end of FY25/26. The company’s guidance for FY25/26 remains optimistic, projecting a high double-digit million EBITDA, with expectations of a GHG certificate price recovery in 2025. However, the recent share price rally, partly driven by the recovery in GHG quota prices, suggests that the earnings miss might impact future results. The focus remains on how the recovery in GHG quota prices will affect the profit and loss statement in upcoming quarters and the development of the Bioethanol segment given the recent improvement in spreads.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €17.00 price target.