DAVY VIEW

Stora Enso’s €175m Q3 2024 operating EBIT was a 10% consensus miss, principally due to weak pulp demand, but was largely as expected post UPM’s warning. Stora Enso cautioned on the packaging and pulp outlook and dismissed hopes of mill closures to address industry overcapacity. Taking a cautious view of Oulu consumerboard mill ramp-up costs and the demand outlook, our updated €816m 2025E operational EBIT sits 15% below the street.