Citi starts Huhtamaki with 'buy', says growth should pick up from 2025
20/06/2024 14:20
** Citigroup initiates Huhtamaki HUH1V.HE with "buy" on
positive market trends, and says it expects the Finnish
packaging maker to meet its long-term growth target of 5-6%
** It says Huhtamaki is one of few food and beverage
packaging names that is able to commercially produce and
innovate amid growing consumer scrutiny and legislation
** The company is also well-placed to benefit from the
sustainability transition in the U.S., it adds
** Citi expects 2024 to be a year of recovery for the
market, followed by stronger growth driven by higher volumes and
improved pricing
** It sees 1% growth for Huhtamaki this year but above 5%
thereafter
** Citi sets PT of EUR 47 vs EUR 36.08 at Wednesday's close,
calling the stock undervalued
** Out of 12 analysts covering Huhtamaki, eight rate the
company "strong buy"/"buy" and four "hold"
** The stock is up more than 3%
(Reporting by Tilla Sjaavaag)
((tilla.sjaavaag@thomsonreuters.com))