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Goldman Sachs initiates coverage on Barry Callebaut stock with Buy rating

Published 20/11/2025, 09:38
Goldman Sachs initiates coverage on Barry Callebaut stock with Buy rating
LCCc1
-6.32%
CC
2.46%
BARN
1.73%

Investing.com - Goldman Sachs initiated coverage on Barry Callebaut AG (SIX:BARN) (OTC:BYCBF) with a Buy rating and a price target of CHF1,370.00, implying 10% upside potential.

The firm expects Barry Callebaut to face near-term volume pressure with a projected 4.8% decline in fiscal year 2026, as the company operates on an August year-end calendar.

Goldman Sachs forecasts a return to volume growth in FY27 (+3.4%) and FY28 (+2.5%), supported by lower cocoa prices, which should drive a 20% increase in adjusted EBIT over the FY25-28 period.

The investment bank projects CHF990 million in free cash flow generation in FY26 and CHF2 billion over FY26-28, leading to debt reduction from 4.5x in FY25 to 3.7x in FY26 and 2.5x in FY28.

Goldman Sachs expects lower net interest costs to drive 55% of Barry Callebaut’s 24% recurring EPS CAGR between FY26-28, with the stock currently trading at 21x 12-month forward P/E.

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