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Jul 16 2024, 07:00 IST/BST
Paper & Packaging
Packaging over pulp in H2
- Sectors : Paper & Packaging
- Companies : International Paper | Stora Enso | SCA | Mondi | UPM | Huhtamaki | DS Smith | Smurfit Westrock
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| International Paper | NEUTRAL | 08/07/24 | N/A | N/A | 4363c |
| DS Smith | NEUTRAL | 08/05/24 | Outperform | 23/01/23 | 421p |
| Mondi | OUTPERFORM | 08/05/24 | Neutral | 05/05/20 | 1586.0p |
| Huhtamaki | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 3914c |
| Stora Enso | NEUTRAL | 24/07/23 | Outperform | 10/05/23 | 1256c |
| UPM | OUTPERFORM | 03/04/23 | N/A | N/A | 3156c |
| SCA | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 15650 |
| Smurfit Westrock | OUTPERFORM | 08/07/24 | N/A | N/A | 4908c |
DAVY VIEW
Ahead of European pulp and packaging Q2 2024 results season, we reaffirm our ‘packaging over pulp’ view for H2 2024. Mondi, our top sector pick, benefits from packaging demand recovery supporting higher (1) containerboard, (2) boxes and (3) bag prices. By contrast, subdued pulp demand has seen Chinese pulp futures fall 10% from the May 2024 peak. We see risk of H2 2024 European and US pulp declines impacting Stora Enso, UPM and SCA profits.
