Cramer says he’s ‘impressed’ of this small specialty materials stock

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.

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 is a dividend stock that currently pays a rather lucrative 6.34% yield. On Mad Money, Cramer said:

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.