Baader downgrades Lindt to 'reduce' on valuation concerns

Chocoladefabriken Lindt & Spruengli AG

06/03/2025 10:52

** Baader Helvea downgrades Swiss chocolate maker Lindt & Spruengli LISN.S to "reduce" from "add", citing valuation concerns and uncertainty over 2025 outlook

** "Mathematically, uncertainty remains and there is rather pressure on the model in 2025," the broker says, projecting negative volume growth and high cocoa prices

** Baader highlights Lindt's higher valuation multiples vs Swiss food sector peers and flags a limited share price upside in the short term

** "Long-term, Lindt remains a high-quality play, but we now do not see a new incremental buyer," it adds

** Separately, J.P.Morgan says it sees rising volume and margin pressures for Lindt, as materials inflation of close to 25% will necessitate price hikes in a teens pct over next year

** Out of 16 analysts that cover Lindt, seven rate it "strong buy" or "buy", six "hold" and three "sell" or "strong sell"

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))