Investment bank Morgan Stanley has raised its recommendation for Finnish forestry giant UPM-Kymmene to "overweight" from "equal weight," and increased its price target to 30 euros from the previous 26 euros.
According to Bloomberg News, the bank highlights the company's improved cost structure, strong cash flow outlook, and low investment levels as key factors behind the upgrade.
Morgan Stanley considers UPM to be one of the most attractive stocks in the paper and packaging sector as it approaches a cyclical low.
UPM is described as a diversified company with less exposure to the weak EU packaging market compared to many of its competitors.
