Download full report with analyst certification and important disclosures
Jan 23 2023, 16:35 GMT
Paper & Packaging
Subdued box demand but positive sentiment inflection
- 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 | OUTPERFORM | 23/01/23 | Neutral | 03/04/19 | 346p |
| Mondi | NEUTRAL | 05/05/20 | Outperform | 19/06/12 | 1483.5p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 3904c |
DAVY VIEW
Despite subdued box demand, we believe de-rated valuations provide appealing 2023 risk/reward as cyclical sectors such as packaging re-rate long before recessions end. With easing cost pressures, we upgrade DS Smith from ‘Neutral’ to ‘Outperform’, while maintaining Mondi at ‘Neutral’. We reiterate our ‘Outperform’ rating on Smurfit Kappa Group (SKG) as our top European packaging pick ahead of its 2022E results on February 8th.
