By Michele Maatouk
Date: Friday 15 Mar 2024
LONDON (ShareCast) - (Sharecast News) - Jefferies upgraded its rating on packaging firm Mondi on Friday following year-to-date underperformance.
The bank said the strategic rationale for the merger with rival DS Smith is "compelling", with "substantial" synergies and value creation.
"Consolidation is good for the industry - we upgrade standalone Mondi from hold to buy post underperformance YTD, and are buyers of both DS Smith and Mondi," it said.
The bank said it prefers DS Smith "given short-term technical pressures on Mondi".
Jefferies said its pro-forma estimates see approximately €3.3bn EBITDA and more than €2 earnings per share by year three post full synergy delivery.
The bank has a price target of 1,650p on Mondi.
It emerged last week that Mondi had agreed to buy smaller rival DS Smith for £5.1bn. The agreement in principle has an implied value of 373p per DS Smith share.
Under the terms of the deal, Mondi shareholders would own 54% of the combined entity, while DS Smith shareholders would own the rest.
At 0915 GMT, Mondi shares were up 1.1% at 1,325.50p,
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Currency | UK Pounds |
Share Price | 1,508.50p |
Change Today | 16.00p |
% Change | 1.07 % |
52 Week High | 1,550.64p |
52 Week Low | 1,179.72p |
Volume | 1,527,346 |
Shares Issued | 441.41m |
Market Cap | £6,659m |
RiskGrade | 133 |
Value |
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Price Trend |
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Income |
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Growth |
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Latest | Previous | |
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Final | Special | |
Ex-Div | 04-Apr-24 | 29-Jan-24 |
Paid | 14-May-24 | 13-Feb-24 |
Amount | 46.67¢ | 160.00¢ |
Time | Volume / Share Price |
16:35 | 785,187 @ 1,508.50p |
16:35 | 960 @ 1,508.50p |
16:35 | 2,522 @ 1,508.50p |
16:35 | 431 @ 1,508.50p |
16:35 | 3,938 @ 1,508.50p |
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