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VERBIO under pressure: Clear downgrading by Deutsche Bank

On Thursday, VERBIO stocks experienced a significant decline in XETRA trading.

Eulerpool News Jan 12, 2024, 10:00 AM

VERBIO shares started on Thursday on the XETRA trading floor with a declining trend. Ultimately, the shareholders of the biofuel manufacturer had to accept a loss of 13.09 percent and the shares dropped to a price of 22.84 euros.

The reason for the decline was a downgrade of the stocks by Deutsche Bank, which lowered them by two levels from "Buy" to "Sell".

Analyst Niklas-Yannik Becker is now the biggest pessimist among the experts evaluating VERBIO stocks, with a target price of 22 euros. This represents a halving of the previous target price of 50 euros.

In addition, the new target price confirms a price risk of over 16 percent compared to the previous day's closing price.

According to Becker, the biofuel producer is facing strong headwinds in the short term, including declining biofuel and GHG (Greenhouse Gas) quota prices.

These factors pose risks to the company's profit outlook for the fiscal year 2023/24. However, the analyst emphasizes that the long-term investment background is quite positive and structurally intact.

Despite the current crash in stock prices, Becker emphasizes that VERBIO still has a promising future as a company. Experts estimate both the long-term market prospects for the biofuel sector and the role that VERBIO holds in this industry.

The downgrade of Deutsche Bank does not change these assessments, which also highlights the long-term potential of VERBIO.

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