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Investing.com - Barclays downgraded Gerresheimer AG (ETR:GXI) (OTC:GRRMF) from Overweight to Equalweight on Wednesday, slashing its price target to EUR23.00 from EUR64.00 following multiple profit warnings from the packaging manufacturer.
The downgrade comes after Gerresheimer issued its fourth profit warning since September 2024, reducing its fiscal year 2025 organic revenue growth guidance to between -4% and -2%, down from its previous forecast of 0% to +2%. The company also lowered its adjusted EBITDA margin guidance to 18.5-19% from approximately 20%.
Gerresheimer attributed the deteriorating outlook to subdued end-market demand, particularly in cosmetics and oral liquid markets, along with under-utilization of new production capacity. The company notably did not reaffirm its medium-term targets of 6-9% organic revenue growth and 23-25% adjusted EBITDA margin, which it had last confirmed in July during its Q2 2025 results.
Barclays expressed skepticism about Gerresheimer’s ability to meet its mid-term revenue growth outlook, citing the company’s business mix. The firm noted that approximately 30% of Gerresheimer’s business consists of moulded glass bottles used by wine, spirits, and perfume companies—segments estimated to grow volumes at only 2-3% long-term.
Gerresheimer stock has declined approximately 65% over the past 12 months, significantly underperforming the SXDP Index, which fell 10% during the same period.
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