JPMorgan upgrades packaging and paper group Mondi to 'overweight'
JPMorgan Cazenove upgraded packaging and paper group on Wednesday to 'overweight' from 'neutral'.
The bank pointed to limited downside risk in containerboard markets and to upside risks in kraft paper markets.
In addition, it said consensus estimates are becoming more reasonable, signalling the end of the earnings downgrade cycle.
JPM also said that through the cycle (TTC) earnings still being around 60% ahead of 2024 EBITDA suggests significant value unlock for medium to long-term investors.
The bank highlighted low valuation multiples, which it said are now more reliable considering that the latest earnings estimates are more reasonable.
It trimmed the price target to 1,430p from 1,435p, which represents around 20% upside.
At 1015 BST, the shares were up 2.3% at 1,215.50p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.