Jefferies has downgraded Mondi PLC (LSE:MNDI) shares despite the company being a “structurally well-placed, low-cost paper and packaging producer”.
Although the FTSE 250-listed corporation has sound fundamentals, analysts see limited upside catalysts in the near term, barring incremental earnings benefits from its capital-allocation strategy.
Jefferies therefore sees Mondi shares consolidating over the following three to six months and has slapped a 'hold' rating on the stock.
Yet patient investors are likely to harvest the benefits of Mondi’s prudent business decisions, financial flexibility and attractive M&A opportunities from 2025 onwards, according to analysts.
For now, Jefferies has a base case price target of 1,650p against the 1,525p publication price.