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Feb 19 2019, 06:30 GMT
Smurfit Kappa Group (SKG) reported record profits, cashflow and leverage in its 2018 results. However, recent weakness in European containerboard prices is likely to result in lower corrugated prices later this year. This has caused us to pull back our 2019 and 2020 profit forecasts. Despite this, the valuation of the company continues to look attractive. More importantly, the free cashflow generated by the business is likely to remain robust, providing management with an array of shareholder value-enhancing options. We reiterate our ‘Outperform’ rating on the stock.
Feb 19 2019, 06:30 GMT