Citi sees little further downside risk for glass packaging firms, ups Vidrala to 'neutral'

Vidrala SA

14/11/2023 08:42

** Citi still expects a weak Q4 for glass packaging
companies as it sees a poor outlook for consumer spending to
continue to weigh on short term investor confidence, but
believes upgrades could emerge in early 2024
    ** Citi sees volumes stabilising and supply/demand balances
in early 2024 following the H2 2023 production curtailments
    ** The broker says it doesn't see many more downgrades for
Verallia  VRLA.PA  and Vidrala  VID.MC  and raises Vidrala to
"neutral" from "sell", while keeping its "buy" rating on
Verallia
    ** It says Verallia has new capacity to grow into so is
well-placed for earnings growth as demand recovers
    ** For Vidrala, the broker believes the company still has a
similar capacity to 2019 so it sees a flatter volume trajectory
    ** The broker also raises its PT for Vidrala to 75 euros
from 70 euros
    ** Out of 14 analysts that cover Vidrala, eight rate the
stock "strong buy" or "buy" and ​six rate "hold" 

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))