Download full report with analyst certification and important disclosures
Sep 18 2020, 07:15 IST/BST
Paper & Packaging
Price increases likely as demand continues to improve
- 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 | 289p |
| Mondi | NEUTRAL | 05/05/20 | Outperform | 19/06/12 | 1578.5p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 3344c |
DAVY VIEW
Davy hosted its 12th Annual Industrials Conference on September 17th. One of the key take-outs from the discussion with the three packaging companies – DS Smith, Mondi Group and Smurfit Kappa Group (SKG) – is confidence in the success of the recently announced containerboard price increase. This is based on solid domestic and export demand, much of which is structural in nature. With limited incremental supply-side risk, it is possible that this could mark the end of a c.2-year negative pricing cycle. At c.7x forecast EBITDA, the sector is not priced for this outcome.
