Barclays cuts Corbion citing rising costs, shares skid

Corbion NV

21/07/2021 08:49

** Shares in Corbion  CORB.AS  fall 6% on Wednesday after
Barclays cut the Dutch food ingredients group to "underweight"
from "equal weight" citing incremental raw materials cost
headwinds in 2022 
    ** The brokerage says costs could be as high as 65 million
euros (c40% of 2020 EBITDA), as hedging that has insulated 2021
margins rolls off
    ** Spot prices will remain elevated in sugar, corn and
soybean oil, it adds
    ** "We expect Corbion to offset the majority of this
headwind with pricing, but given the magnitude of cost pressure
even partial under- recovery could be material," Barclays says
    ** The brokerage cut its 2022 EBITDA estimates by 4%,
leaving its forecast 10% below the company-compiled consensus
    ** Session drop wipes year-to-date gains, the stock hits the
lowest price since March 22
    


 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))