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Posted by
Two Blokes Jul 16 -
Filed in
Stock
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2 views
Barry Callebaut is fundamentally undervalued, with current volatility in cocoa prices masking its intrinsic value and long-term potential. Temporary supply shocks and speculative trading have driven cocoa prices to unsustainable highs, but I expect normalization within four to six quarters. The company's cost-plus pricing model and long working capital cycle create short-term cash flow challenges, but management's action plan should improve liquidity by FY2026.
