'Average meal at the right price': Berenberg ups Corbion on low valuation

Corbion NV

21/08/2023 09:36

** Berenberg upgrades Dutch biochemical group Corbion
 CORB.AS  to "buy" from "hold," arguing the stock is undervalued
despite industry-wide difficulties and scepticism concerning the
company's activities
    ** Corbion's current share price already accounts for the
main headwinds the company faces, most notably rising sugar
prices, Berenberg argues
    ** The broker sees room for sales growth next year, as the
market for polylactic acid, which the Dutch firm produces,
stabilises, opening the way for the bioplastics manufacturer to
profit off recently-opened new facilities
    ** Corbion selling off its emulsifier business, a
divestement Berenberg expects to be announced later in 2023,
will help reduce cash concerns, the broker says
    ** "The stock's price to earnings discount to consumer
chemicals stands at multi-year highs" - Berenberg
    ** Shares in Corbion have lost about 36% of their value over
the past year
    ** Out of 7 analysts that cover the stock, six rate it
"strong buy" or "buy," and ​one rates it "hold" 

 (Reporting by Victor Goury-Laffont)
 ((Victor.goury-laffont@tr.com))