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 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


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.

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Feb 13 2024, 09:40 GMT