On Thursday, Barclays made a notable adjustment to its rating on Corbion NV (CRBN:NA) (OTC: CSNVF) stock, upgrading it from Equalweight to Overweight. The firm also increased the price target for Corbion to €24.50, up from the previous target of €21.50.
The upgrade was prompted by Corbion's robust performance in the second quarter, which Barclays believes signals strong momentum for the latter half of the year and into 2025. The company has reported its second consecutive EBITDA beat, a significant turnaround considering its history of missed projections over the past three years.
Despite surpassing Q2 expectations with more than a 9% beat on consensus, Corbion's management has maintained its guidance for over 18% EBITDA growth for continuing operations, which would translate to a €165 million EBITDA for the fiscal year 2024.
Barclays' own forecast for the group's EBITDA in 2024 exceeds the implied guidance by more than 7% and aligns with the consensus, bolstered by sustained Q2 volumes and margin performance.
Barclays anticipates that Corbion may raise its guidance during the third-quarter stage due to the conservative nature of its current projections after the strong second-quarter results. While such an upgrade might not significantly surpass the consensus, it is expected to reinforce investor confidence in the company's performance.
Looking ahead to 2025, Barclays expresses a more optimistic view on Corbion's EBITDA delivery compared to the consensus. This optimism is based on the solid progress the company has made on its cost program, which is expected to drive further margin expansion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.