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Dec 1 2020, 07:00 GMT
Smurfit Kappa Group’s (SKG) latest investment plan looks set to capitalize on two exciting structural growth drivers: e-commerce and sustainability. It is doing so from a position of financial strength and improving industry dynamics. The current valuation does not reflect the structural improvement in margins and returns achieved in recent years – nor the potential from the growth opportunities now facing the company. The stock is ripe for a re-rating. We are increasing our price target to 4200c and reiterate our ‘Outperform’ rating.