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Verbio Vereinigte BioEnergie Faces Challenges from Low GHG Certificate Prices and Production Delays

Verbio Vereinigte BioEnergie Faces Challenges from Low GHG Certificate Prices and Production Delays

Constantin Hesse, an analyst from Jefferies, maintained the Hold rating on verbio Vereinigte BioEnergie (0NLYResearch Report). The associated price target remains the same with €11.00.

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Constantin Hesse’s rating is based on several key factors influencing Verbio Vereinigte BioEnergie’s current financial situation. The company’s recent quarterly results aligned with expectations, but the persistent challenges in the biofuels market, particularly the low prices of GHG certificates, have impacted their performance. This led to a revision of their annual EBITDA guidance to a lower range, which the market has already partially absorbed following a notable decline in stock value.
Additionally, there were delays in the ethanol line ramp-up in Nevada, which affected the expected positive EBITDA contributions. Despite these setbacks, the management remains hopeful for a recovery in GHG certificate prices in 2025, aided by new regulations on surplus GHG quotas. The forthcoming updates and calls will be crucial in understanding the potential for price recovery, which could stabilize or improve the stock’s standing.

According to TipRanks, Hesse is an analyst with an average return of -9.6% and a 33.88% success rate. Hesse covers the Industrials sector, focusing on stocks such as Nordex, NEL ASA, and PowerCell Sweden AB.

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