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Apr 10 2019, 07:05 IST/BST
Paper & Packaging
Cancellation of capacity projects positive for European packaging sector
- 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 | 340p |
| Mondi | OUTPERFORM | 19/06/12 | N/A | N/A | 1777.0p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 2640c |
DAVY VIEW
Expected growth in European containerboard capacity has been a concern among investors in the packaging sector in recent years. Two proposed projects have been cancelled/deferred in recent weeks, which is positive for the sector. This follows a series of delays in new projects coming on-stream. Our analysis of the supply side suggests that capacity utilisation rates in the industry will remain supportive of pricing over the medium to long term. This will also help corrugated prices. Smurfit Kappa Group remains our top pick in the sector.
