Wells Fargo downgrades Magnera despite China-U.S. trade war de-escalation

As previously reported, Wells Fargo downgraded Magnera (MAGN) to Equal Weight from Overweight with a price target of $16, down from $22. Despite recent China-U.S. trade war de-escalation, the firm believes visibility is reduced and expects volumes lower than its initial estimates, also impacting synergy progress. Though Wells sees potential for long-term upside, the firm believes the next 6-12 months could be challenged, with investors likely to have an opportunity to gain entry at a more attractive/less volatile entry point.