DAVY VIEW

Stora Enso’s €156m Q124 operational EBIT was a 75% consensus beat, principally due to the Packaging Materials division’s return to profit (flattered by €30m CO2 rebate). Positively, Stora Enso raised its 2024 cost saving target from €80m to €120m but, conservatively, it reaffirmed unchanged 2024E profit guidance. While Stora Enso remains a low margin, cyclical pulp and packaging group with elevated leverage, our updated €633m 2024E operational EBIT sits 16% ahead of (pre-results) Vara consensus. We reaffirm our ‘Neutral’ view with an increased €14 price target (PT).