EU and US could reach trade deal this weekend - Reuters
On Tuesday, Berenberg analysts downgraded Corbion NV (CRBN:NA) (OTC: CSNVF) stock from Hold to Sell, significantly reducing the price target to EUR16.00 from the previous EUR24.00. The downgrade was prompted by concerns over the company’s future earnings and market challenges it may face.
Sebastian Bray of Berenberg pointed out that while Corbion’s business in food preservation might seem resilient to economic downturns, the expectations for the company’s earnings beyond 2025 are overly optimistic. The analyst identified two main issues that could potentially impact Corbion’s profitability: the potential for re-negotiated algal oil contracts for salmon, which could lead to lower prices starting next year, and the observed decline in polylactic acid (PLA) prices.
The analyst also highlighted the risk associated with the United States’ role as an exporter of PLA, suggesting that the market could be susceptible to retaliatory measures from China. This concern is tied to the recent tariff announcements from President Donald Trump’s administration, which, while having led to a decrease in certain raw material costs, including sugar—a key input for Corbion—may also pose broader trade challenges.
Despite acknowledging improvements in Corbion over the past decade, Bray remains cautious about the company’s earnings outlook for 2026. The revised price target of EUR16 reflects this cautious stance, as it suggests a more conservative valuation of Corbion’s stock compared to previous estimates.
Investors are likely to watch closely how Corbion navigates the potential re-pricing of its algal oil contracts and the broader market dynamics affecting PLA prices. The company’s ability to adapt to these challenges will be crucial in determining its financial performance in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.