Mativ Holdings Inc (NYSE: MATV) has gained nearly 35% over the past two months but Jim Cramer still recommends owning this name at current valuation.
Mativ reported a strong third quarter
Despite the rally, the Mad Money host is convinced that the Georgia-based company is still trading at a reasonable valuation.
I’ve taken a closer look [at Mativ Holdings] and I’m pretty impressed. I think there’s something there. They make a range of engineered solutions and critical components for everything from healthcare, filtration, sustainable packaging.
In November, Mativ Holdings Inc reported a 24% annualised growth in its adjusted operating profit for its third financial quarter. Its sales were up a whopping 76% on a year-over-year basis.
Cramer’s bullish call is in line with Wall Street that currently has a consensus “buy” rating on the Mativ stock.
Mativ stock pays an enticing dividend
Other reasons for his constructive view include shareholder returns. Mativ stock currently pays a rather lucrative 6.34% dividend yield. On Mad Money, Cramer said:
For over a year, I’ve told you this market likes companies that make real things, provide real services at a profit, returns profits to shareholders and trades at a reasonable valuation. Mativ passes every single one of those tests.
Mativ Holdings Inc is a fairly new business – formed only last year through a merger of SWM and Neenah.
At writing, Wall Street sees upside in the Mativ stock to $36 on average that represents about a 40% upside from here.
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