DAVY VIEW

We remain positive on SKG’s prospects into 2022 and beyond. We believe structural improvements (sustainability, higher through-cycle box demand, greater European paper consolidation and capacity discipline) are of much greater relevance to shareholders than debating where paper prices are going short term. Containerboard prices could well plateau in the coming months, but we remind investors that SKG’s integrated model smooths out both box price and paper cycles and has supported consistent, long-term creation of economic value. We upgrade our FY 22 EBITDA forecasts by 5% to €1,880m and reiterate our ‘Outperform’ rating.