Verallia's share price is up nearly +3% following Berenberg's positive analysis. On Wednesday, the research firm raised its recommendation on Verallia shares to 'buy' from 'hold' on the French glass packaging specialist, on which it is more positive, as it is on the sector in general. Its price target has been reduced from 45 to 41 euros.

After a six-month period deemed 'difficult' for the glass packaging market, the analyst says he expects 'record' results and margins for the sector in 2023.

In its study, Berenberg raises its recommendation on Verallia due to its 'particularly attractive' valuation, marked by an Enterprise Value/Ebit ratio of 7x to 8x, even though its volumes bottomed out in the third quarter.

The intermediary also points to a favorable scenario in which the group could set itself an Ebitda target of over €1 billion for 2024, compared with €1.1 billion in 2023, whereas the market is currently forecasting a much sharper decline.

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