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Apr 3 2023, 16:30 IST/BST
Paper & Packaging
Unwrapping pulp and packaging opportunities
- Sectors : Paper & Packaging
- Companies : Stora Enso | SCA | Mondi | UPM | Huhtamaki | DS Smith | Smurfit Kappa Group
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 | 318p |
| Huhtamaki | NEUTRAL | 03/04/23 | N/A | N/A | 3438c |
| Mondi | NEUTRAL | 05/05/20 | Outperform | 19/06/12 | 1291.5p |
| SCA | NEUTRAL | 03/04/23 | N/A | N/A | 13595 |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 3328c |
| Stora Enso | NEUTRAL | 03/04/23 | N/A | N/A | 1198c |
| UPM | OUTPERFORM | 03/04/23 | N/A | N/A | 3090c |
DAVY VIEW
European pulp and packaging companies have de-rated on weak 2023 demand and pricing. Ahead of Q1 earnings season (starting on April 25th), with tentative signs of containerboard stabilisation, we favour packaging over pulp. We reaffirm our ‘Outperform’ ratings on Smurfit Kappa Group (SKG) and DS Smith, with UPM our sole pulp-related ‘Outperform’ due to confidence in its ‘Spearheads for Growth’ organic expansion.
