Shares of packaging company DS Smith PLC (LSE:SMDS) jumped 5% after analysts at UBS turned positive on the stock, citing its underperformance, profit growth and limited exposure to Russia.
The company is “well-positioned to benefit from secular trends in the market (e-commerce, plastics-to-paper substitution), and with a short-term deleveraging strategy, risks related to M&A have decreased,” UBS added in a note to clients.
The analysts raised their rating to “buy” from “neutral,” though also cut the price target on the stock to 384p from 416p “given the market and sector de-rating,’’ UBS said.
After Wednesday’s advance, the shares remain down about 15% for the year.