Barclays upgrades DS Smith to ‘overweight’

Barclays upgraded DS Smith on Monday to ‘overweight’ from ‘equalweight’ and lifted the price target to 360p from 310p.

It noted that DS Smith is one the cheapest stocks in global packaging currently and said it expects a volume recovery to drive a multiple re-rating.

"We believe DS Smith should cut capex to maintenance capex levels and hope that DS Smith doesn't engage in expensive M&A and instead focuses on optimising its portfolio and operations," Barclays said.

At 0930 GMT, the shares were up 1.9% at 302.20p.