Risk factor
Limited trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Sappi Limited operates as a producer of materials derived from sustainable wood fibers, with its operations spanning Europe, North America, and South Africa. The company's diverse portfolio features dissolving pulp, various graphic papers, and a comprehensive range of packaging and specialty papers. This latter category includes items like flexible packaging, label papers, functional paper packaging, containerboards, paperboards, silicone base papers, dye sublimation papers, and inkjet papers, alongside casting and release papers. Beyond paper products, Sappi is involved in manufacturing specialty chemicals and food ingredients. Furthermore, the company contributes to renewable energy generation through biomass, biogas, and hot water, supplies fuel rods, and actively owns and manages extensive forest lands. Established in 1936 and headquartered in Johannesburg, South Africa, the company was originally named South African Pulp and Paper Industries Limited before adopting its current name, Sappi Limited, in 1973.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA.
Target Price
The average target price of SAP.JO is 1767 and suggests 61% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr