In his latest stock in focus for Money Magazine, Talaria Co-CIO Chad Padowitz discusses the Swedish consumer staple Essity including their defensive earnings, strong cash flow and leading market positions.
“In a base case scenario, there is a reasonably clean path to an 8%-9% per annum return, even with the margin going backwards towards the long-term average. The markets they operate in are relatively concentrated and they are the market leader or #2 player in 90% of cases with stable to growing market share for most,” Chad said.
Essity is attractively valued, with steady growth prospects and ongoing dividends and buybacks, offering a solid long-term return potential.
