Hold Rating for Verbio Vereinigte BioEnergie Amidst Sluggish Greenhouse Gas Certificate Prices and Bioethanol Market Pressures

Analyst Constantin Hesse from Jefferies maintained a Hold rating on verbio Vereinigte BioEnergie (0NLY – Research Report) and decreased the price target to €9.80 from €10.50.

Constantin Hesse’s rating is based on several factors influencing Verbio Vereinigte BioEnergie’s current market position. One primary concern is the sluggish recovery in greenhouse gas certificate prices, which have not increased as significantly as anticipated since March. This slow growth in prices poses challenges for the company’s revenue potential.
Additionally, the bioethanol market remains under pressure, with start-up costs in the US continuing to impact profit margins. Although there is an expectation for profitability to improve slightly in the next fiscal year, particularly with increased activity in the US, high capital expenditures are likely to constrain free cash flow generation. Given these considerations, Verbio’s stock is trading at a valuation of 11 times its expected EV/EBITDA for 2025/2026, leading to a Hold rating.

According to TipRanks, Hesse is an analyst with an average return of -5.1% and a 42.42% success rate. Hesse covers the Industrials sector, focusing on stocks such as Nordex, NEL ASA, and PowerCell Sweden AB.