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Oct 15 2024, 07:00 IST/BST
Paper & Packaging
Pulp caution into Q3 earnings
- Sectors : Paper & Packaging
- Companies : SCA | UPM | Stora Enso
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Stora Enso | NEUTRAL | 24/07/23 | Outperform | 10/05/23 | 1201c |
| UPM | NEUTRAL | 17/09/24 | Outperform | 03/04/23 | 3020c |
| SCA | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 14645 |
DAVY VIEW
We are cautious on Stora Enso, SCA and UPM into Q3 earnings on weak pulp demand and pricing. With structurally elevated Finnish wood costs, we believe mill closures – ideally from both Stora Enso and UPM – are required to improve industry profitability. Pre-mill closures, our 2025e EBIT forecasts sit 10-15% below the street. We reaffirm our ‘Neutral’ Stora Enso and UPM view, with SCA our sole pulp-related ‘Outperform’.
