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Jan 20 2020, 07:00 GMT
Paper & Packaging
Cash generation remains robust despite earnings revisions; buy SKG and MNDI
- Sectors : Paper & Packaging
- Companies : Mondi | Smurfit Kappa Group | DS Smith
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| DS Smith | NEUTRAL | 03/04/19 | Outperform | 18/05/18 | 359p |
| Mondi | OUTPERFORM | 19/06/12 | N/A | N/A | 1602.0p |
| Smurfit Kappa Group | OUTPERFORM | 30/06/09 | N/A | N/A | 3222c |
DAVY VIEW
Despite a strong performance in 2019, the current valuation of the European packaging sector does not fully reflect the structural improvement in margins and returns achieved in recent years. Strong cash generation, even post the downward earnings revisions presented in this report, will continue to provide opportunities to enhance shareholder value. Smurfit Kappa Group (SKG) and Mondi Group (MNDI) remain our top picks in the sector.
