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Investing.com - Barclays (LON:BARC) has upgraded Stora Enso OYJ (HE:STERV) (OTC:SEOAY) from Underweight to Equalweight and raised its price target to EUR10.50 from EUR8.00.
The upgrade comes as the Finnish forestry and packaging company undergoes a strategic review that could create significant upside potential, according to Barclays.
While Barclays acknowledges downside risks to estimates for Stora Enso due to overcapacity in the consumerboard industry and other operational challenges, the firm has become more constructive on the stock.
The strategic review opens up various options for the company, including a potential cash sale of Swedish forest assets that Barclays believes could create significant value.
The revised price target of EUR10.50 represents a substantial increase from the previous target of EUR8.00, reflecting Barclays’ more positive outlook on Stora Enso’s prospects amid its strategic initiatives.
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