Carbios is gaining ground on the stock market this Tuesday in the wake of a positive note from Berenberg, which has initiated a buy recommendation on the stock.

The greentech company's stock, which has developed an enzyme-based biological process to deconstruct plastics and prevent pollution, gained 2.4% in a slightly down Paris market (-0.2%).

The stock is still down 22% since the start of the year.

For Berenberg, the technology developed by Carbios is likely to be a 'game-changer' within the polyethylene terephthalate (PET) packaging recycling industry, by improving the recyclability and circularity of products.

In its view, the interest already shown in the company by several major groups such as L'Oréal, Nestlé Waters and PepsiCo suggests that its technology will soon be adopted.

Its price target of 51 euros thus reveals a potential upside of 108%.

Carbios completed a 141 million euro capital increase this summer, the largest carried out on Euronext Growth since 2015. The group is due to publish its half-year results on September 28.

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