UBS announced on Thursday that it had downgraded its recommendation on Barry Callebaut shares, from "buy" to "sell", with a price target lowered from 1900 to 1180 Swiss francs.

In a research note, the analyst said he was taking a "more cautious" view of the stock, particularly in view of the tensions currently affecting the global chocolate market.

The study dwells on the recent surge in cocoa bean prices, against a backdrop of unfavorable weather, a factor which should be reflected in chocolate prices and penalize Barry's sales over the 2024-2025 period, according to the intermediary.

With a PER of 18x, the share's valuation is however too stretched to support half-hearted growth and uncertain cash flow, judges the professional.

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