Berenberg Reiterates Emmi's Buy Rating Ahead of H1 Report

05:45 AM EDT, 07/27/2026 (MT Newswires) -- Berenberg maintained Emmi (EMMN.SW) at buy, with an unchanged price target of 900 francs, ahead of the Swiss dairy products and desserts company's first-half results on Aug. 19. In a cross-sector note on European midcaps published Monday, the research firm said it forecasts 2.4% organic growth for the first half and 2.1% for the full year, at the mid-point of the company's guidance range of between 1% and 3% amid milk oversupply and one-offs. Including sustained foreign exchange headwinds, Emmi is projected to record flat growth on a reported basis. On the flip side, Berenberg analysts are of the view that the group's "strong brand and attractive niches" could offset volatility. "Emmi structurally reduced its exposure to more basic products (such as liquid milk and butter), reducing this to 24% of sales in 2025 - down from 32% in 2015. Conversely, higher-margin fresh products (eg Emmi's branded lines, as well as desserts) climbed to 34% of sales in 2025, up from 24% in 2015. We think that the ongoing premiumisation of Emmi's products provides it with a commercial shield," the research firm said, adding that these factors are anticipated to support the company's margins. As such, Berenberg expects the company's first-half EBIT margin to come in at 6.5%, up from the prior-year period's 6.4%, helped by a "favorable product mix," with the full-year forecast at 7.1%. For 2026 to 2028, EBIT and EPS projections were revised, with the 2026 estimates trimmed, while those for 2027 and 2028 were raised. Sales projections were left unchanged across the three-year period.