Magnera initiated with an Overweight at Wells Fargo

Wells Fargo analyst Gabe Hajde initiated coverage of Magnera (MAGN) with an Overweight rating and $22 price target The firm views the risk/reward on Magnera shares as attractive, particularly for investors “able to endure near-term choppiness” as the industry works through a supply overhang. Magnera is the largest global player in nonwoven specialty materials, the analyst tells investors in a research note. The firm says demand normalization following the pandemic-induced elevated demand period for several of the company’s key products is entering year three. Magnera is in the late innings of a demand downcycle, though excess capacity could take more time to unwind, contends Wells.