Berenberg starts SIG Group with 'buy', sees growth opportunities

SIG AG

20/01/2023 09:05

** Berenberg starts coverage of SIG Group  SIGNC.S  with
"buy", as it sees growth opportunities for the Swiss packaging
company due to the recent acquisition of Scholle IPN and strong
position in the liquid dairy market
    ** The broker emphasizes SIG's worldwide market leader
position in bag-in-box products, as well as its number two
position for aseptic cartons and spouted pouches
    ** Considering its market share of around 22% in
concentrated beverage packaging & its bluechip customer base of
both premium and low prices beverages, SIG is thus less impacted
by declining consumer spending, it says
    ** Berenberg forecasts SIG Group's acquisition of Scholle to
increase the firm's revenue exposure in Asia-Pacific and the
United States by about 12%
    ** "As result, we expect SIG's total revenues to grow by a
Compound annual growth rate 2022E-24E of 12.9%, while we expect
the cumulated spouted-pouch and BIB market to grow by a CAGR
2022E-30E of 6.9%" it adds
    ** Out of 12 analysts that cover SIG Group AG, seven rate
the stock "strong buy" or "buy, "​four rate "hold" and one rates
the stock "sell"
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))