VERBIO SE's Growth Potential Affirmed by NuWays AG

The recent research by NuWays AG has classified Verbio SE as a "BUY," with a target price set at EUR 41, reinforcing confidence in the bioenergy company's strategic prospects. VERBIO's recent Capital Markets Day highlighted a promising investment outlook, bolstered by potential US tax incentives. The company reported a strong financial performance for FY25/26, evidenced by a 9.5 percentage point increase in EBITDA margin to 10.4%.

The company outlined its mid-cycle EBITDA scenario, projecting approximately €300 million, with emphasis on German GHG quota prices, biofuel spreads, and full utilization of existing assets. US market potential also plays a key role, with management noting a significant EBITDA upside from US operations and potential tax credits.

Progress in renewable chemicals and a focus on cash generation were also underscored, pointing towards a shift from heavy investments to stronger cash flows, with capital expenditures significantly reduced and monetization of GHG quotas projected.