Paper & Packaging

Reducing forecasts on more cautious pricing; cash flow drives long-term value

  • Sectors : Paper & Packaging
  • Companies : DS Smith | Mondi | Smurfit Kappa Group

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’.

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Apr 3 2019, 07:15 IST/BST

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