Mayr-Melnhof confirmed at BUY, TP EUR 209 - Estimates and TP raised post blowout prelim. Q2 earnings
We have increased our estimates, which in turn triggered a target price increase to EUR 209 from EUR 192, underpinning our BUY recommendationWe have been upbeat about a sequentially improved earnings power post already strong Q1 but the the actual earnings uptick in Q2 blew away expectations
While the H2 earnings run-rate should come down, we are confident that MM Group can exceed the EUR 500 mn threshold in FY 22e
Impairments of RU/UA assets most likely were not triggered in Q2 but the risk is still looming. We think that the dependence on gas in the MM Board & Paper production and associated supply concerns are burdening the sentiment towards the stock
We acknowledge the gas-related concerns but our positive perception of the investment story and its catalysts remains intact
Mayr-Melnhof Karton and its subsidiaries are primarily engaged in manufacturing and selling cartonboard and folding cartons with a focus on Europe. Co.'s business segments include: Mayr-Melnhof Karton, which is engaged in the manufactures and markets numerous grades of cartonboard, concentrating on coated cartonboard produced predominantly from recovered paper as well as virgin fiber-based cartonboard; and Mayr-Melnhof Packaging, which is engaged in converts cartonboard into industrial printed folding cartons mainly for the food industry, other consumer goods industries, and into cigarette packaging as well as confectionary packaging.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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