Mativ upgraded to Buy from Hold at Stifel

Stifel analyst Lars Kjellberg upgraded Mativ (MATV) to Buy from Hold with a price target of $10, down from $15.50. The stock has declined 65% in the past six months reacting to weaker than expected earnings and cash flow and a delay of leverage reduction, the analyst tells investors in a research note. The firm believes the selloff is overdone. While Stifel sees a challenging start to 2025, it believes Mativ’s earnings will inflect higher in Q3 and its debt reduction capacity will return in 2025. It expects “margin resilience” to be supported by strong cost control and resolution of advanced films issues, coupled with incremental cash flow generation and debt paydown setting the base for higher intrinsic valuation for Mativ.