UBS upgrades Viscofan rating, optimistic about growth acceleration and cash returns

LootboxPhobia · 2026-03-04T20:05:50+00:00

UBS upgrades Viscofan stock rating from Neutral to Buy and raises the target price to €72, as its new mid-term targets indicate accelerated growth. Organic sales growth is expected to reach 7.1% from 2025 to 2030, with EBITDA margins expanding to 24.8%, and dividends growing by 5% annually. Overall market outlook is optimistic.

LootboxPhobia

2026-03-04 20:05:50

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Investing.com - UBS upgrades Viscofan stock (BME:VIS) from Neutral to Buy, raising the target price from €58.30 to €72, citing the company’s new medium-term goals showing faster growth than historical trends.

The upgrade follows Viscofan’s release of its FY2025 results and new medium-term targets for 2025-2030, which include 8% organic sales growth, 9% year-over-year EBITDA growth, and increasing dividends.

UBS states that these targets are accelerating compared to historical trends, supported by improved operational momentum, stronger market growth (from 3% to 5% in 2024), and Viscofan expanding capacity while competitors have not kept pace or have reduced capacity, leading to greater outperformance.

UBS forecasts that organic sales growth will accelerate to 7.1% during 2025-2030, with a growth rate of 7.7% in FY2026. The firm notes that the market outlook is positive, with Viscofan holding only a 0.1% share in the highly fragmented global packaging market.

UBS expects EBITDA margins to expand to 24.8% by 2030, aligning with Viscofan’s medium-term targets, driven by cost savings of €15-22 million and improved cost management.

The firm states that supported by cost savings and better cost management, accelerated EBITDA delivery will significantly boost net profit, earnings per share, and cash flow.

UBS has raised its EPS estimates for FY2026-2028 by 0%, 2%, and 8%, respectively, reflecting higher revenue and profit margin forecasts. The firm expects Viscofan’s dividends to grow at a 5% annual rate, with stronger free cash flow generation enabling continued deleveraging to 0.5x by 2030, suggesting room for increased cash returns without small-scale acquisitions.

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