BNP Paribas Exane starts coverage on Huhtamaki with a 'neutral' rating
25/03/2024 14:57
** BNP Paribas Exane initiates coverage of Finnish packaging
maker Huhtamaki HUH1V.HE with a "neutral" rating as it is
being cautious on mid-term growth but says the company's
valuation seems fair for growth
** It expects 4% volume growth and cost tailwinds in 2024,
partly offset by pricing pressure and foreign exchange (FX)
headwinds, driven by improved consumer spending power and
end-of-destocking effects
** BNP forecasts 4% revenue CAGR for 2024-28, which is below
company estimates of 5-6%
** The broker sits 4% below consensus for 2024 EBIT but sees
valuation in line with recent history, as the company trades on
13.6x 2024 EV/EBIT, close to its two-year average
** Out of 11 analysts covering Huhtamaki, seven rate the
company "strong buy" or "buy", three "hold," while one rates it
"sell"
(Reporting by Elviira Luoma)
((Elviira.luoma@thomsonreuters.com))