Barry Callebaut: share down, as UBS more cautious

(CercleFinance.com) - Barry Callebaut shares fell on Thursday in the wake of a downgrade by UBS, which said it is concerned about tensions on the global chocolate market.


The stock is currently down over 3%, notably falling to its lowest level since 2018.

UBS said it is taking a "more cautious" view of the stock, downgrading it from "buy" to "sell", with a target price lowered from 1,900 CHF to 1,180 CHF.

The study dwells on the recent surge in cocoa bean prices, against a backdrop of unfavorable weather, a factor which should be reflected in chocolate prices and penalize Barry's sales over the 2024-2025 period, according to the analyst.

However, with it trading at a P/E of 18x, the share's valuation is too stretched to support half-hearted growth and uncertain cash flow, the broker believes.


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