Paper & Packaging

Cash generation remains robust despite earnings revisions; buy SKG and MNDI

  • Sectors : Paper & Packaging
  • Companies : DS Smith | Mondi | Smurfit Kappa Group


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


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.

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Jan 20 2020, 07:00 GMT