On Monday, Berenberg reaffirmed its positive stance on Gerresheimer AG (GXI:GR) (OTC: GRRMF), maintaining a Buy rating and a price target of €125.00. The financial institution's endorsement comes as Gerresheimer's stock has seen a 7% year-to-date increase, a reflection of the company's enhanced earnings visibility and promising outlook. This improvement is attributed to the successful ramp-up of GLP-1 contracts and robust demand for injectable devices.
The company's management has indicated that Gerresheimer anticipates sequential organic revenue growth from the third to the fourth quarter. This forecast is supported by the introduction of new production lines in the fall and anticipated reorders of vials from pharmaceutical customers.
The firm's evaluation suggests that the stock is trading at a multiple of 10.2 times EBITDA, which is significantly lower than the approximately 22 times average of its sector peers.
The analyst highlighted the on-track progress of the second half of the year, pointing to the stock's recent performance as a sign of the group's burgeoning potential. With a variety of positive developments expected in the near future, the financial institution reiterated its Buy rating for Gerresheimer.
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