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Jan 30 2024, 07:00 GMT
Paper & Packaging
Packaging demand recovery; pricing to follow
- 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 | 291p |
| Huhtamaki | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 3722c |
| Mondi | NEUTRAL | 05/05/20 | Outperform | 19/06/12 | 1492.5p |
| SCA | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 13805 |
| Smurfit Westrock | OUTPERFORM | 30/06/09 | N/A | N/A | 3639c |
| Stora Enso | NEUTRAL | 24/07/23 | Outperform | 10/05/23 | 1206c |
| UPM | OUTPERFORM | 03/04/23 | N/A | N/A | 3385c |
DAVY VIEW
After a two-year decline, US box demand returned to growth in Q4 2023. We expect a similar European return to box volume growth in Q1 2024, likely to be evident at Smurfit Kappa’s FY23e results on February 7th. We view the US and European return to box demand growth as a positive step ahead of possible containerboard and box price hikes later in CY 2024. We reaffirm our ‘Outperform’ rating on both Smurfit Kappa and DS Smith, with a ‘Neutral’ Mondi rating.
