90% Upside “At a current valuation of just 4.2x EBITDA versus packaging peer group’s average of 7.1x, SXP’s shares represent an excellent risk-reward proposition given its strong free cash flow yield which will support shareholder returns across multiple avenues including paying down debt, share buyback, dividend growth and M&A,” ( Beacon Securities)
My Take: New analysts are coming onboard and recognizing the hidden value now. An initial $12 target is astounding but obviously this analyst too thinks that SXP can continue to pass on higher costs. In this environment most CO’s. cannot. The valuation gap should close as more recognize the value embedded here.