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Investing.com - Berenberg has downgraded SIG Group AG (SIX:SIGN) (OTC:SCBGF) from Buy to Hold, while significantly reducing its price target to CHF9.50 from CHF17.00.
The downgrade reflects Berenberg’s adjusted earnings per share cuts of up to 21% and expectations of higher working capital intensity for the packaging solutions provider. The firm specifically cited potential de-stocking headwinds in 2026-2027 as a contributing factor to these revisions.
Berenberg anticipates SIG Group’s organic growth will remain limited throughout 2026, aligning with the company’s own guidance of 0-2% growth, and extending into 2027. This muted outlook stems from what the firm describes as soft demand for SIG’s packaging solutions.
Despite SIG Group trading at what Berenberg characterizes as a historically low forward price-to-earnings multiple of 13x, the firm believes several factors will constrain share performance. These include an ongoing lawsuit with SIG’s largest shareholder and the company’s subdued outlook for 2026.
The downgrade comes as Berenberg reassesses SIG Group’s near-term growth prospects and financial position, leading to the substantial 44% reduction in its price target for the Swiss packaging company.
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