Rubis stock surges as Bernstein initiates coverage with Outperform rating

Published 15/09/2025, 08:54
Rubis stock surges as Bernstein initiates coverage with Outperform rating

Investing.com - Bernstein SocGen Group initiated coverage on Rubis SCA (EPA:RUI) with an Outperform rating and a price target of EUR38.70, according to a research note released Monday. The company, currently valued at $3.76 billion, trades near its 52-week high with a modest P/E ratio of 8.5x. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model.

The Paris-based energy distribution and storage company has attracted attention from analyst Guillaume Delaby, who described Rubis as an "anti-fragile jewel" that "benefits from the passage of time while thriving during tough economic conditions." This resilience is reflected in the company’s impressive 25-year streak of dividend increases and current 4.52% yield, according to InvestingPro data, which also reveals 11 additional key insights about the company’s performance.

The research note addressed the company’s commandite structure, questioning when and at what price this governance model might be removed, particularly as founders Gilles Gobin and Jacques Riou prepare to step down as managing partners in 2027 while remaining general partners.

Pressure on the current structure has intensified as investors Patrick Molis and the Bolloré Group increased their holdings in the second quarter of 2025, with Molis raising his stake from 5% to 9% and Bolloré increasing from 5% to 6%.

On September 12, Bloomberg reported that CVC Capital Partners and Trafigura group were among potential bidders for Rubis SCA, further fueling speculation about the company’s future governance structure.

In other recent news, Rubis reported a 24% increase in net income for the first half of 2025, even as sales declined by 2% during the same period. This significant growth in net income was largely due to the absence of foreign exchange headwinds and reduced debt costs. The company’s financial statement showed a notable improvement in the "other finance income & expenses" line, which decreased from -€32.7 million in the first half of 2024 to -€1.6 million in the first half of 2025. These developments highlight Rubis’s ability to enhance its financial performance despite challenges in sales.

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