DS Smith

Baby step on re-rating journey

  • Sectors : Paper & Packaging
  • Companies : DS Smith

Ratings and price correct at time of issue.

  • DS Smith

    Closing Price: 310p

  • RATING 23/01/23

  • PREVIOUS RATING 03/04/19



The DS Smith AGM on September 5th indicated that its box demand has passed the trough, supporting unchanged FY24e consensus of £708m EBIT (Source: Visible Alpha). Trading at c.9x P/E and c.6x EV/EBITDA (c.20% valuation discount to ten-year history) and with a near-6% FY24e dividend yield, as confidence builds in DS Smith’s return to box volume growth by end FY24e and consensus FY24e delivery, we expect a re-rating.

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Sep 5 2023, 00:50 IST/BST