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May 5 2020, 07:30 IST/BST
Paper & Packaging
Structural changes will favour industry leaders
- 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 | 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.
