Analyst Constantin Hesse from Jefferies maintained a Hold rating on verbio Vereinigte BioEnergie and keeping the price target at €25.00.
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Constantin Hesse has given his Hold rating due to a combination of factors, balancing Verbio’s operational improvements with a cautious view on the near-term outlook. The company delivered a robust third quarter, supported by higher GHG quota prices, stronger GHG sales volumes, and better bioethanol margins, which together drove a meaningful uplift in profitability and free cash flow, allowing net debt to decline meaningfully.
At the same time, management’s updated guidance, while pointing to full-year EBITDA at the upper end of the target range and lower year-end net debt, also signals a noticeably softer fourth quarter as GHG quota sales are set to ease. With the price target kept unchanged at $25 and the stronger Q3 performance already reflected in expectations, Hesse sees limited upside at the current valuation, leading him to maintain a neutral, Hold stance on the shares rather than move to a more positive recommendation.
According to TipRanks, Hesse is a 5-star analyst with an average return of 13.9% and a 48.71% success rate.
