Verbio shares surge following Jefferies upgrade

Verbio, a German biofuel manufacturer, saw its stock price rise significantly following an upgraded rating from investment bank Jefferies. Jefferies raised its rating from ‘Hold’ to ‘Buy’ and increased its price target from €36 to €42, suggesting a potential upside of approximately 45% to 50%.

Analysts at Jefferies cited improved profit potential and higher margins in biodiesel production as primary drivers. They also noted that Verbio has nearly completed its extensive investment program, allowing the company to focus on its biorefinery platforms and potentially expand into the chemical business.

In contrast, Deutsche Bank Research provided a more cautious outlook. While acknowledging potential upside, they recently lowered their price target from €42 to €40. Their assessment highlighted a recent 25% decline in EBITDA and anticipated continued weakness in upcoming quarters due to lower bioethanol prices.