Jefferies raises target price on Mondi
Jefferies upped its target price on paper and packaging business Mondi from 1,650.0p to 1,700.0p on Tuesday following the group's first-quarter trading update.
FTSE 100
8,184.24
17:04 04/11/24
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FTSE 350
4,511.23
16:54 04/11/24
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4,468.37
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General Industrials
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0.59%
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Mondi
1,243.00p
16:59 04/11/24
-0.84%
-10.50p
Jefferies said Mondi had outperformed this last month, off a depressed level after walking away from SMDS merger and benefiting from higher volume and P&P pricing sentiment.
"One-off FX impact weighed on 1Q24 and 2024 upgrades, but with stable CE wood costs, improving order books and higher pricing to be realised from 2Q24 onwards, we think it's too soon to step away, given EBITDA upside risk if second targeted price hikes into 3Q24 are achieved," said the analysts.
Reporting by Iain Gilbert at Sharecast.com