Banking on green, Berenberg starts Afyren at 'buy'- shares jump

AFYREN SA

08/11/2021 10:25

** France-based environmental biotechnology company Afyren
 ALAFY.PA  jumps 3.6% after Berenberg initiates coverage with
"buy", highlighting its "unique" non-GMO technology for
production of bio-based carboxylic acids
    ** According to the broker, Afyren product portfolio is the
broadest and most cost competitive 
    ** Though the company's first plant is only due online in
late Q1 2022, Berenberg notes that demand for bio-based products
is so strong that about half of the 35-mln-euro per annum of
sales expected from this plant is already subject to take-or-pay
contracts
    ** The broker predicts that the success of the first plant
will be swiftly followed by the construction of two more
100%-owned facilities, allowing the company  to generate just
under 200 million euros in sales and over 30% EBITDA margins by
2030
    ** It sees market demand for bio-based carboxylic acids,
which can be used in animal feed, lubricants or even cosmetics,
increasing over 10% per year 
    ** Berenberg sets price target at 12 euros, a 47.6% hike
from Afyren's closing price of 8.13 euros on Friday
    ** The stock has gained about 14% since the company's
listing on Oct. 1
    


 (Reporting by Lucinda Langlands-Perry)
 ((Lucinda.langlands-perry@thomsonreuters.com))