Verbio shares rise as Jefferies initiates stock at 'buy'

Verbio SE

19/07/2023 08:58

** Shares in Verbio Vereinigte Bioenergie  VBKG.DE  rise
around 4% after Jefferies starts coverage of the German biofuel
manufacturer with "buy"
    ** As the only producer and supplier of biodiesel,
bioethanol and biomethane on the market, Verbio is set to
benefit from the growing need to decarbonise harder-to-abate
sectors such as heavy transport and industry, the brokerage says
    ** It says biofuels offer a viable and efficient solution to
accelerate the energy transition, as they are chemically
analogous to fossil fuels used in today's engines and industrial
applications
    ** "The company's differentiated ability to manufacture
biomethane in combination with bioethanol using a proprietary
process, while peers typically manufacture a combination of the
latter and lower value feedstock, gives it a revenue advantage
over competitors," Jefferies says
    ** The broker adds Verbio's net cash position puts it in a
solid position to keep expanding through investments in
biomethane, which it says offers a large market opportunity
    ** The stock is among the best performers on Germany's
small-cap index  .SDAXI 

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))