TSX gains after CPI shows US inflation rose 3%
Investing.com - UBS downgraded Gerresheimer AG (ETR:GXI) (OTC:GRRMF) from Buy to Neutral and slashed its price target to EUR29.00 from EUR75.00 on Tuesday.
The downgrade follows Gerresheimer’s third cut to its fiscal year 2025 guidance, which UBS noted comes with a further increase in leverage expected to reach 4.4x by year-end, without clarity on new covenant levels.
UBS highlighted concerns regarding the German packaging manufacturer’s fiscal year 2024 report audit by Bafin, noting that the company is looking to engage but has been unable to fully reassure investors due to a lack of details received from the financial regulator.
The investment bank identified a potential sale of Gerresheimer’s Moulded Glass division as a key deleveraging opportunity, though timing for such a transaction remains unclear.
The significant price target reduction from EUR75.00 to EUR29.00 reflects UBS’s diminished outlook for the company amid ongoing financial uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.