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Dec 6 2018, 08:45 GMT
DS Smith’s share price has fallen by over 30% over the past two months. This has been driven entirely by multiple contraction with no change to earnings forecasts. While corrugated demand has slowed over the period, this is in-line with our expectations and also our full year assumption. Corrugated prices have increased and OCC costs look stubbornly low. In this environment, there is no cause to change our forecasts. The recent sell-off therefore looks overdone.