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Investing.com - UBS initiated coverage on Finnish packaging specialist Huhtamaki Oyj (HEL:HUH1V) with a buy rating and a price target of EUR40.00 on Thursday.
The research firm cited Huhtamaki’s leading position in sustainable fiber, paperboard and flexible packaging, describing the company as a "defensive compounder" at an inflection point following the anticipated Q2 2025 results.
UBS identified three key reasons for the positive outlook, including Huhtamaki’s positioning to benefit from midterm structural tailwinds in sustainable packaging driven by recovering consumer spending, changing preferences, regulations, and corporate sustainability targets.
The firm also highlighted Huhtamaki’s self-help program, improving execution, and easing inflationary pressures, which provide a path to growth exceeding 4%, along with margin and returns expansion.
UBS noted that Huhtamaki’s improving cash flow and balance sheet strength enable disciplined capital deployment, creating opportunities for value creation through potential M&A activity and enhanced shareholder returns.
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