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Apr 3 2019, 07:15 IST/BST
Paper & Packaging
Reducing forecasts on more cautious pricing; cash flow drives long-term value
- Sectors : Paper & Packaging
- Companies : Mondi | Smurfit Kappa Group | DS Smith
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| DS Smith | NEUTRAL | 03/04/19 | Outperform | 18/05/18 | 348p |
| Mondi | OUTPERFORM | 19/06/12 | N/A | N/A | 1761.5p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 2599c |
DAVY VIEW
While pricing for European containerboard and corrugated may be under pressure in the short term, the industry remains highly cash generative. This strong cash flow, combined with structurally higher margins and returns, ensures the sector continues to provide significant long-term value. Smurfit Kappa Group (SKG) remains our top pick; we reduce our DS Smith rating to ‘Neutral’.
