Magnera: Q2 Selloff Creates Opportunity

Summary

• Magnera is a specialty materials leader formed from the Glatfelter-Berry merger, now trading at a trough multiple after post-merger macro headwinds.
• Despite Q2 guidance cuts and tariff-related uncertainty, Magnera maintains strong cash flow guidance and is progressing on its deleveraging plan.
• Management is well-aligned with shareholders, demonstrated by CEO equity purchases and a credible strategy to reduce leverage below 3.0x over several years.
• While risks remain from commodity exposure and customer concentration, I believe Magnera is positioned to benefit from global trade shifts and reward patient investors.

Daniil Dubov/iStock via Getty Images

The November 2024 merger of Glatfelter (GLT) and Berry’s (BERY) HH&S business has formed a combined entity now known as Magnera (NYSE:MAGN). The stock came out hot in February, printing guidance ahead of expectations and being further propelled by a $500k

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MAGN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.