Citi upgrades Mondi to 'buy'

Citi upgraded its stance on Mondi on Friday to ‘buy’ as it said that after a difficult couple of years, the market headwinds of destocking and lower pricing are reversing across the packaging company’s product segments (board, flexibles, paper).

"We see ‘normalised’ EBITDA of around €1.8bn in 2-3 years - achieving this at 8x EV/EBITDA (the multiple before the Russia-Ukraine conflict) would put the stock at circa £25/share in 3 years," it said.

At 1200 BST, the shares were up 1.2% at 1,594.50p.