Paper & Packaging

400p DS Smith offer gives 15% Mondi EPS accretion

  • 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 320p
Huhtamaki OUTPERFORM 04/10/23 Neutral 03/04/23 3812c
Mondi NEUTRAL 05/05/20 Outperform 19/06/12 1360.5p
SCA OUTPERFORM 04/10/23 Neutral 03/04/23 14120
Smurfit Kappa Group OUTPERFORM 30/06/09 N/A N/A 3742c
Stora Enso NEUTRAL 24/07/23 Outperform 10/05/23 1132c
UPM OUTPERFORM 03/04/23 N/A N/A 2927c

DAVY VIEW

Mondi has confirmed merger discussions with packaging peer DS Smith. With Mondi trading at over a 60% CY24E P/E premium to DS Smith, our merger analysis (see page 4) indicates that Mondi could offer £4.00/share for DS Smith while delivering 15% Mondi FY25E EPS accretion, assuming €200m merger synergies. Mondi will report FY23E results on February 22nd, and DS Smith will issue a Q3 FY24E update on March 6th. Pending merger terms, we reaffirm our ‘Outperform’ view on DS Smith and ‘Neutral’ view on Mondi.

Download full report with analyst certification and important disclosures

Feb 13 2024, 09:40 GMT

Download