Deutsche Bank upgraded Verbio to a buy rating from hold, citing an improved regulatory environment and stabilizing market conditions. The biofuel producer's shares jumped over 10% following the announcement, as investors reacted to the bank's more optimistic outlook for the company.

The brokerage raised its price target to €29.40 from €15, significantly above the stock's previous close of €23.38. Analyst Michael Kuhn pointed to rising greenhouse-gas (GHG) quota certificate prices as a key driver, noting that the end of the double-counting mechanism for Chinese imports is retroactive to January 1.

Deutsche Bank expects these regulatory changes to push GHG prices higher and increase demand for Verbio's products. The upgrade reflects improved visibility on the company's guidance and operating conditions, with the bank suggesting the sector may be recovering after a challenging period. The biofuel producer's outlook has strengthened as market conditions show signs of stabilizing.