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Jun 19 2019, 06:30 IST/BST
DS Smith
Reducing forecasts to reflect higher costs; pricing dynamics key for earnings progress
- Sectors : Paper & Packaging
- Companies : DS Smith
DAVY VIEW
DS Smith’s positive commentary around pricing provided the sector with a long-awaited filip last week. If containerboard prices stabilise/increase over the summer, the sector should continue to re-rate. With the company’s growing leverage remaining a concern, we retain our ‘Neutral’ rating. If pricing turns positive, however, DS Smith’s attractive valuation should provide decent upside potential.
