'Fuelling the future' - Deutsche Bank starts Verbio with 'buy'

Verbio SE

27/03/2023 09:18

** Deutsche Bank initiates coverage of Verbio  VBKG.DE  with
"buy", saying the German biofuel firm can benefit from green
transition in Europe 
    ** Analysts expect that the company will outperform the
underlying market thanks to its leading technology and
favourable regulatory changes, noting Verbio's 2020-2027 sales'
Compound Annual Growth Rate (CAGR) of 16% vs flat market 
    ** DB also says that investors can gain from the bioenergy
firm's exposure to the ESG trend, adding that it can provide
green energy to fossil-fuel selling companies who look into
decarbonisation 
    ** The brokerage sees sequential shift to a higher-margin
biomethane business, increasing its revenue share from current
5% to around 21% in 2026-2027, which would drive EBITDA CAGR of
21.8%
    ** Verbio shares are up 3%
  

 (Reporting by Andrey Sychev)
 ((Andrey.Sychev2@thomsonreuters.com))