Citigroup resumes Verallia with 'buy' on attractive risk/reward

Verallia SA

17/07/2025 09:03

Corrects 1 paragraph to clarify Citigroup resumed coverage, not initiated

** Citigroup resumes coverage of French glass packaging maker Verallia VRLA.PA with a "buy" rating and a 37.7 euros target price, citing an attractive risk/reward profile

** Citigroup sees a positive volume growth as consumer demand recovers, expecting pricing pressures to ease as spot prices appear to be bottoming out

** It anticipates margin improvement in H2 and in 2026, despite a short-term negative spread forecast

** The broker notes that the recent acquisition of UK-based Beatson Westgarth Group will likely dominate the share price performance over the next few weeks

** "On a fundamental level we like VRLA's leading industry position in medium-term trends including premiumisation and low-emission furnaces," Citigroup adds

** Among the 10 analysts that cover Verallia, three rate it "strong buy" or "buy" and seven rate it "hold" - LSEG data

 (Reporting by Mathias de Rozario in Gdansk)

 ((mathias.derozario@thomsonreuters.com;))