Shares of Lotus Bakeries, the Belgian snack producer behind the Biscoff brand, declined 3.4% to €12,400 on Tuesday, paring back from Monday’s close of €12,840.
The pullback followed a downgrade from Bernstein, which lowered its rating to market perform from outperform. The move reflects concerns over valuation after Lotus Bakeries’ shares surged roughly 60% year-to-date, pushing its price-to-earnings multiple to around 47. Belgian financial analysts noted such a multiple is typically associated with high-growth technology companies rather than consumer staples.
Bernstein indicated that the stock’s current price already reflects strong first-half revenue growth driven by the Biscoff brand, a key driver of the company’s performance. While management has expressed confidence in the long-term growth prospects of Biscoff, the brokerage firm stated that "quality remains unquestioned, but valuation is less compelling." Analysts warned that at such a premium valuation, even minor headwinds could trigger notable price corrections.
The broader market environment also weighed on Lotus Bakeries’ shares. U.S. equities were down, with the S&P 500 falling 0.3% and the Nasdaq declining 0.6%, contributing to a cautious investor tone that extended into European markets. The BEL 20, Lotus Bakeries’ home benchmark index on Euronext Brussels, mirrored the mild declines seen on days of global risk aversion.
