Corbion falls after Berenberg cuts stock to 'hold'

Corbion NV

30/10/2024 11:38

** Shares in Corbion  CORB.AS  fall 7% after Berenberg cut
the Dutch biochemical group to "hold" from "buy", saying all
three factors it saw for a potential upside have now
materialised
    ** The broker notes the share price is up around 25% since
it moved to "buy" in August 2023, when it was bullish on growth
in Omega-3 rich algae-derived oils business, debt reduction
through divestments, and recovery in core ingredients volumes
    ** Berenberg "does not rule out" that Corbion could exit
poly lactic acid (PLA) activities - bioplastic products with
reduced carbon footprint - in 2025
    ** It says persisting headwinds weigh on PLA profitability,
including European regulatory "antipathy" towards bioplastics,
lower prices for conventional styrene and increases in Chinese
PLA supply helped by sugar prices
    ** It raises PT to 26 euros from 24 euros, noting continuing
strong performance in algea in Q3
    ** The shares are on track for their worst day since January
if the losses hold

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))