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Aug 15 2019, 06:30 IST/BST
Paper & Packaging
Positive fundamentals to continue in H2; valuations remain attractive
- 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 | 333p |
| Mondi | OUTPERFORM | 19/06/12 | N/A | N/A | 1627.0p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 2662c |
DAVY VIEW
Recent results from the European packaging sector confirmed on-going strength in corrugated demand and stabilisation in containerboard pricing. Our full year EBITDA forecasts for the three main players – DS Smith, Mondi and Smurfit Kappa Group (SKG) – are therefore very achievable. This will sustain strong cash generation, providing these companies with shareholder value-enhancing options. At sub-6x 2019 EBITDA, SKG remains our top pick in the sector.
