Barclays sees growing risks for EU food ingredients producers driven by GLP-1 medications

Corbion NV

19/10/2023 09:29

** Barclays sees 'terminal growth pressures' for the EU food
ingredients deliverers, as the GLP-1 drugs pose a structural
bear case that is difficult to dismiss
    ** Glucagon-like peptide-1 (GLP-1) medications are a type of
non-insulin medication used to treat type 2 diabetes by lowering
blood glucose levels and aiding in weight loss
    ** The brokerage says growing negative narrative around the
health risks of ultra-processed foods could further pressure
market expectations
    ** "We turn more cautious on the predominantly food-exposed
ingredient names," it adds
    ** Barclays downgrades Barry Callebaut  BARN.S  and
Suedzucker  SZUG.DE  to "underweight", citing increased
short-term pressure for the Swiss chocolate manufacturer and
remaining cautious on the European sugar cycles beyond Fy 2024
for the sugar producer
    ** It also cuts Dutch Corbion  CORB.AS , Ireland's Kerry
 KYGa.I  and UK's Tate  TATE.L  to "equal weight" on GLP-1
concerns 

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))