Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Berenberg downgraded Barry Callebaut AG (SIX:BARN) (OTC:BYCBF) from Buy to Hold while raising its price target to CHF1,200.00 from CHF1,110.00 on Thursday.
The downgrade reflects Berenberg’s assessment that the cash benefits from easing cocoa costs are now adequately reflected in consensus estimates, limiting further upside potential for the Swiss chocolate manufacturer.
Berenberg’s survey of Ivory Coast cocoa farmers revealed concerns about deteriorating longer-term issues within the Ivorian cocoa industry that could potentially challenge cocoa supply growth in the future.
These supply challenges could result in structurally higher cocoa prices if not addressed, which would present a significant cash drain for Barry Callebaut’s operations.
The research firm made minor adjustments to its earnings forecast for Barry Callebaut while implementing the price target increase to CHF1,200.00.
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