Verbio seen up after Jefferies ups to 'buy' on attractive earnings outlook

** Jefferies upgrades biofuels maker Verbio VBKG.DE to "buy" from "hold", citing an increasingly attractive earnings set-up, higher-than-expected biodiesel margins and rising demand from tighter German emissions rules

** Shares in Verbio are seen up 5.2% in pre-market trade

** Jefferies says Verbio's focus shifted to generating higher earnings, cash flow and returns from its existing integrated biorefinery platform, with its chemicals business offering additional medium-term upside

** Jefferies models about €600 million ($673.56 million) of cumulative FCF over 2026-2029, supporting 11%/12% FCF yields in FY 26/27 and 27/28, and sees balance sheet capacity for future expansion or M&A

** Broker notes that Verbio management indicates German emissions-credit prices could add about €40-80 million to EBITDA, equal to 17%-35% of the midpoint of FY 26/27 guidance

** Jefferies sees FY EBITDA guidance as conservative

($1 = 0.8908 euros)