David Roux, an analyst from Morgan Stanley, maintained the Buy rating on Barry Callebaut AG. The associated price target is CHF1,130.00.
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David Roux has given his Buy rating due to a combination of factors that highlight Barry Callebaut AG’s strong financial performance and strategic improvements. The company’s free cash flow has significantly improved, marking a positive cash flow for the first time in two years, which is a promising sign for investors. Additionally, the company’s leverage has decreased from 6.5x to 4.5x, indicating a stronger financial position.
Despite a soft guidance for FY26 with expected volume declines, the company’s performance in the second half of FY25 exceeded expectations, particularly in net income and free cash flow. The market is likely to respond positively to these results, as they demonstrate Barry Callebaut’s ability to manage its financials effectively amidst challenging market conditions. The company’s valuation, trading at 15.3x CY26E P/E and an 8.6% free cash flow yield, also supports the Buy rating, suggesting potential for future growth and returns.
In another report released on October 29, Kepler Capital also maintained a Buy rating on the stock with a CHF1,250.00 price target.