Paper & Packaging

Structural changes will favour industry leaders

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

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 299p
Mondi NEUTRAL 05/05/20 Outperform 19/06/12 1354.0p
Smurfit Kappa Group OUTPERFORM 30/06/09 N/A N/A 2788c

DAVY VIEW

The COVID-19 pandemic has long-term, fundamental implications for the European packaging sector. While the short-term impact on earnings continues to be negative, as detailed in this report, the importance of packaging in supply chains has been firmly established. Security of supply and changing consumer behaviours will favour larger players like Smurfit Kappa Group (SKG) and DS Smith. Further industry consolidation is likely to follow, which will ultimately drive a sector re-rating. Therein lies the opportunity.

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May 5 2020, 07:30 IST/BST

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