Verallia: Berenberg stays on hold
(CercleFinance.com) - As part of a sector report, Berenberg has begun monitoring the share of French glass manufacturer (for food packaging), Verallia, which was recently floated on the Paris Stock Exchange.
It has initiallly adopted a hold rating on the share, with a target price of 32 euros.
Analysts note that the Verallia share is trading at an EV/EBITDA multiple of 16x, against 14.8x for its Spanish peer Vidrala, one of the best sector players.
However, Berenberg prefers to wait and see, pointing out that Verallia's management team has only recently been formed, especially since the group's ambitious growth targets already seem to be priced in.
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