Bernstein cuts Verallia stock rating, lowers target to EUR30

Published 06/05/2025, 12:12
Bernstein cuts Verallia stock rating, lowers target to EUR30

Tuesday, Bernstein analysts downgraded Verallia SA (VRLA:FP) stock rating from Outperform to Market Perform and reduced the price target to EUR30.00 from EUR35.00. The downgrade follows a series of developments that suggest BWGI’s offer to become the majority shareholder of Verallia is likely to succeed. These developments include a recent reduction in Verallia’s adjusted EBITDA forecast for the fiscal year 2025 and rising trade tensions that may further impact the company’s fundamental performance and share price.

In addition to the downgraded financial outlook, significant shareholder activity has influenced Bernstein’s assessment. Invesco, previously the largest institutional shareholder with a 10.7% stake in Verallia, significantly reduced its position to approximately 0.7% as of April 25, 2025. Moreover, BPI France has expressed its intention to tender about half of its holding, which accounts for 3.8% of Verallia.

The Board of Directors of Verallia has deemed BWGI’s offer as ’fair.’ Bernstein analysts estimate that for BWGI to declare its bid successful, it would require a tender of 30-31% of the free float. Given the prospect of Verallia’s stock liquidity fading, this could deter some investors, further contributing to the likelihood of BWGI’s offer succeeding in acquiring at least 50% of Verallia’s share capital and voting rights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.