Optimistic Outlook on Verallia SAS Despite Economic Challenges: Buy Rating with 41.8% Upside Potential

Stifel Nicolaus analyst Lars Kjellberg maintained a Buy rating on Verallia SAS (VRLA – Research Report) today and set a price target of €40.25.

Lars Kjellberg has given his Buy rating due to a combination of factors that highlight Verallia SAS’s favorable financial outlook. Despite a challenging economic environment, the company’s earnings growth is expected to gain momentum by the fourth quarter of 2025, with a notable upside potential of 41.8% to the price target. This growth is underpinned by a positive trend in volume momentum and a strong sequential performance in the last quarter, indicating a resilient operational capacity.
Moreover, the firm’s guidance projecting 2025 EBITDA to be close to 2024 levels appears prudent given current geopolitical uncertainties and the risk of disruptive tariffs. Additionally, Verallia’s ability to more than double its free cash flow to approximately €200 million showcases strong financial management and potential for future returns. These factors collectively contribute to Kjellberg’s optimistic outlook on Verallia’s stock, meriting the Buy rating.