Berenberg cuts Huhtamaki to 'hold', sees uncertainty in 2024
10/04/2024 11:02
** Berenberg downgrades Huhtamaki HUH1V.HE to "hold" from
"buy", expecting a challenging environment for the Finnish
packaging maker's Foodservice and Flexibles divisions in Q1
** It expects some weakness in 2024 due to both macro factors
and pricing and cuts its 2024-2025 sales estimates by 2.5%,
seeing sales growth of 1% to 1,062 million euros ($1.15 billion)
in Q1
** Some of Huhtamaki's top customers in Foodservice may have
been hit by boycotts related to the conflict in the Middle East,
the broker adds
** However, efficiency improvements should help to support
operating margins, hence the broker keeps its adjusted EBIT
forecasts largely unchanged
** Despite the uncertain growth outlook in 2024, Berenberg
sees the long-term potential intact, expecting growth drivers
like fibre-based technology to support the company's 5-6%
organic growth target
** Huhtamaki shares slide 3.5% at GMT 0950
** Out of 12 analysts covering Huhtamaki, six rate the
company "strong buy" or "buy", five "hold," while one rate it
"sell"
($1 = 0.9210 euros)
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))