Mondi way too cheap, especially with the likelihood of a huge special dividend

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The company is churning out cash and does not appear to be interested in a big acquisition at current prices With a juicy, fat special dividend possibly on the way, shares in paper & packaging firm  () are too cheap, according to (DB). Since the third quarter earnings miss in mid-October, the shares have retreated by more than a fifth, leaving the valuation significantly below its peers, argues DB, which has upgraded the stock from ‘hold’ to ‘buy’. READ: Mondi warns on profits as currency fluctuations and rising costs take their toll DB reckons that a €750mln special dividend could be on the way on top of the €300mln normal dividend, which is more than 10% of the market capitalisation (roughly €10.2bn) at the current share price and more than half of the upside implied by DB’s price target of 2,150p. The shares rose 2.3% to 1,860p on the upgrade. Having jotted a few figures down on the back of an envelope, reck
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