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Jefferies keeps its “buy” rating and raises its target for the packaging and paper producer to 1,325p. The broker thinks Mondi has the greatest emerging market presence in the sector and enough capacity on its balance sheet to pursue acquisitions or return cash to investors.
TATE & LYLE
Numis has a “hold” rating and 730p target price for shares in the food group. While Tate & Lyle’s results last week met expectations, the broker reckons the firm needs to make a big acquisition in speciality food ingredients to revive the business.
Espirito Santo has a “neutral” rating and a fair value estimate of 309p on the interdealer broker. The broker thinks that consolidation is long overdue given the dearth of trading activity, and Tullett’s share price move has come from investors betting on a deal now that boss Terry Smith is leaving.