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Oct 15 2024, 07:00 IST/BST
Paper & Packaging
US Q3 box pricing power
- Sectors : Paper & Packaging
- Companies : Smurfit Westrock | International Paper
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Smurfit Westrock | OUTPERFORM | 08/07/24 | N/A | N/A | 4560c |
| International Paper | NEUTRAL | 08/07/24 | N/A | N/A | 4819c |
DAVY VIEW
Anticipate US box pricing focus at Q3 2024 earnings, which start with Packaging Corporation of America (PKG) on October 22nd. Expect c.2% quarter-on-quarter (qoq) box price increases with muted cost inflation (e.g. easing OCC) to boost box maker Q3 2024 profits. Although Cascades’ Q4 2024 linerboard hike failed, if International Paper (IP) and Smurfit Westrock (SW) close mills, we see potential additional 2025 linerboard increases. Pending progress towards IP’s $4bn EBITDA target, we stay at ‘Neutral’, preferring the recently merged SW.
