6 new stocks added last week by ProPicks AI are already up by 2.5%. Don't miss the momentum!Get 50% off

UBS maintains Buy rating on Neste stock with EUR41.00 target

EditorAhmed Abdulazez Abdulkadir
Published 13/03/2024, 14:10
© Reuters.

On Wednesday, UBS reaffirmed its positive stance on Neste Oyj, listed on the Helsinki stock exchange as NESTE:FH and over-the-counter as NTOIY, maintaining a Buy rating with a price target set at EUR41.00. The endorsement follows Neste's Analyst Day event, which included a tour of the company's Rotterdam facility, specializing in renewable diesel and Sustainable Aviation Fuel (SAF).

The CEO of Neste, Matti Lehmus, along with the management team, presented a reaffirmation of the company's targets and emphasized its competitive edge. Neste's early entry into the SAF market, its flexible operations, and the capability to process difficult feedstocks were highlighted as significant advantages. Additionally, the management provided an updated supply and demand forecast, projecting a more optimistic scenario beyond 2024.

While the company's communication on the future margins for Renewable Products and the potential uplift from SAF was not expansive, it remains a central topic of discussion among investors. UBS believes that for Neste's stock to recover from its previous underperformance, it is crucial for the company to demonstrate a positive trajectory in earnings and resolve operational challenges.

The financial institution anticipates that Neste will begin to show this positive earnings momentum throughout the remainder of 2024, particularly as the production and sales of SAF increase.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.