Shares of Aryzta, the Swiss bakery group, fell 8.3% to 41 francs on Thursday, marking the lowest level in nearly four years, as UBS delivered a double downgrade to the company's stock.
The bank reduced its rating from 'Buy' to 'Sell' and cut its 12-month price target from 70 francs to 40 francs, implying a 4% downside. UBS also forecast stagnant or slightly declining organic growth from fiscal 2026 onward, citing a weak consumer environment that could erode pricing power. Rising competition and potential expansion of in-house production by a major customer were cited as additional headwinds.
Aryzta's first-half 2026 results, published 10 days prior, showed a decline in both revenue and profit, driven primarily by its German operations. The company has launched a comprehensive review of the German business, evaluating 'all options' to address the challenges. The stock has since lost nearly 16% over two trading sessions.
Following the results, analyst estimates have been revised downward. Seven analysts now cover the stock, with two—UBS and Kepler Cheuvreux—assigning a 'Sell' rating. All seven have reduced their price targets, bringing the average to 60 francs from 75 francs 11 days ago. Five analysts still recommend buying the shares, while two advise selling.
