Verallia confirmed at BUY, TP EUR 38 - ? Raising the glass (and the target price)
Verallias Q1 21 results again proved the resilience of the business modelThe FY 21 outlook of adj. EBITDA of around EUR 650 mn with the margin already exceeding the 25% mark was confirmed
We assume that the easing of pandemic containment measures coupled with the re-opening of gastronomy and tourism could increasingly turn into a demand tailwind
Trading at FY 21-22e EV/EBITDA multiples of 8.1x and 7.4x still suggests that there is value in the shares, in our view., The FCF and dividend yields remain compelling
Against the backdrop of a target price increase to EUR 38 from EUR 34 we reiterate the BUY recommendation
Verallia Deutschland AG, formerly Saint Gobain Oberland AG, is a Germany-based producer of glass containers and packages. It focuses on the production of glass bottles and jars for food and and drinks, including for beer, wine, sparkling wine, liquor, water, soft drinks, baby food and canned food. The Company's product range includes bottles and jars in various shapes, sizes and colors. The Company operates as subsidiary of Saint-Gobain Emballage SA, and has production sites in Essen, Wirges, Neuburg and Bad Wurzach in Germany, in Zorya in the Ukraine, as well as in Kamyshin and Kavminsteklo in the Russian Federation. Its subsidiaries are Black Sea Glass Packaging llc, GPS OBerland GmbH, Private JSC Consumers-Sklo-Zorya, JSC Kavminsteklo, ZAO Kamyshinsky Steklotarny Zawod and YAO STI.
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