Paper & Packaging

Q1 results recap: signs of stabilisation

  • Sectors : Paper & Packaging
  • Companies : Stora Enso | SCA | Mondi | UPM | Huhtamaki | DS Smith | Smurfit Kappa Group


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 316p
Huhtamaki NEUTRAL 03/04/23 N/A N/A 3374c
Mondi NEUTRAL 05/05/20 Outperform 19/06/12 1282.0p
SCA NEUTRAL 03/04/23 N/A N/A 14505
Smurfit Kappa Group OUTPERFORM 30/06/09 N/A N/A 3418c
Stora Enso OUTPERFORM 10/05/23 Neutral 03/04/23 1218c
UPM OUTPERFORM 03/04/23 N/A N/A 3044c


While subdued demand, destocking and lower prices were consistent Q1 2023 themes, we see Q2 2023 signs of stabilisation in (1) Packaging, (2) Chinese pulp and (3) Wood (lumber). We re-affirm our ‘Outperform’ view of packaging leaders Smurfit Kappa Group (SKG) and DS Smith. While UPM remains our key pulp-related ‘Outperform’, we upgrade Stora Enso from ‘Neutral’ to ‘Outperform’.

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May 10 2023, 06:50 IST/BST