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ubs downgrades neste stock to neutral and cuts price target significantly
UBS has downgraded Neste Oyj's stock rating from Buy to Neutral, slashing the price target from €15.00 to €10.00 amid a 63% decline in stock value over the past year and concerns over Renewable Products margins. Berenberg and TD Cowen also lowered their ratings and price targets, citing industry overcapacity and uncertainties affecting earnings. Despite these challenges, Neste maintains a long history of consistent dividend payments and analysts project a potential rebound in margins next year.
UBS has downgraded Neste Oyj from Buy to Neutral, slashing the price target from €15.00 to €10.00, citing a 63% stock decline over the past year and concerns over renewable product margins. Analysts predict a gross profit margin of just 9.95% for the current year, with expectations of improvement next year. Berenberg and TD Cowen have also lowered their ratings and price targets, highlighting industry overcapacity and margin pressures as significant challenges for Neste's financial outlook.
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