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May 10 2023, 06:50 IST/BST
Paper & Packaging
Q1 results recap: signs of stabilisation
- Sectors : Paper & Packaging
- Companies : Stora Enso | SCA | Mondi | UPM | Huhtamaki | DS Smith | Smurfit Westrock
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 | 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 Westrock | 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 |
DAVY VIEW
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’.
