This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Shares found support after recent 8.3% sell-off. Potential for rebound to extend the current rising channel. Beneficiary of need for packaging to protect all manner of industrial and consumer goods, supported by explosion in on-line retail. Growing via small acquisitions. In mid-May, broker Davy said Mondi’s Q1 trading update was strong with good demand and positive pricing momentum. There has been sector M&A recently.
A US -initiated global trade war could dent sentiment towards companies involved in packaging and protecting goods in transit. The company is exposed to the South African Rand, with strength making its exports more expensive. Q1’s trading statement highlighted inflationary cost pressures and currency headwinds. Acquisitions represent risk of overspending. The 3% forward dividend yield is at the lower end of the UK Index and is currency sensitive.
Broker consensus is positively biased, with 82% of analysts recommending Buy and 12% Neutral and only 6% of saying Sell. This is supported by 83% of brokers seeing upside from current levels and the consensus target of 2300p (16% above current levels) is well beyond our short-term target of revisiting June highs.
Next Event: H1 Results, 3 Aug
Latest Broker 12-Month Consensus: 82% Buy, 12% Hold, 6% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.6 | -4.4 | 4.7 | 6.2 | -3.3 | 49.5 | 38.1 | 84.1 | 155.5 |
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Prepared by Michael van Dulken, Head of Research