Bernstein upgrades Viridien stock rating to Outperform on improved debt outlook

Published 03/09/2025, 09:30
Bernstein upgrades Viridien stock rating to Outperform on improved debt outlook

Investing.com - Bernstein upgraded Viridien (VIRI:FP) stock rating from Market Perform to Outperform on Wednesday, while significantly raising its price target to EUR94.00 from EUR61.00.

The upgrade comes after Viridien’s recent debt refinancing, which Bernstein believes improves the company’s risk-reward profile by providing "new time value" through the issuance of two October 2030 bonds.

The March 2025 bond issuance includes a $450 million bond with 10% interest and a €475 million bond with 8.5% interest, which Bernstein indicates provides medium-term flexibility of approximately three years.

Bernstein views Viridien’s equity as "a call option on the company’s assets" given its high debt level of $877 million for 2024, but now sees potential for the company to deleverage organically by approximately $80 million annually over the next three years.

With Viridien shares trading at historical lows, Bernstein suggests the stock now presents "an attractive risk-reward proposition" for investors willing to take on some risk.

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

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