Verallia: Oddo initiates coverage with 'buy' rating
(CercleFinance.com) - Oddo has initiated its coverage of the glass packaging group Verallia with a buy rating and a target price of 32 euros (24.
75 euros in late Monday morning trading).
As the European leader and global number 3 player in its segment, Verallia operates in the glass packaging market, which is posting steady growth, which is closely correlated to GDP growth. The current context will hit its growth momentum, although only temporarily, Oddo says.
The group's strategy is based on controlled growth, an operational excellence program and a top-of-the-range offer that should encourage a return to a positive earnings growth momentum as early as 2021 (2020/22 CAGR: +10.0% for EBITDA; +20% for OP), analysts add.
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