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Jan 9 2025, 07:00 GMT
Paper & Packaging
2025 top picks: Smurfit Westrock and UPM
- 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 | 5361c |
| DS Smith | NEUTRAL | 08/05/24 | Outperform | 23/01/23 | 546p |
| Mondi | OUTPERFORM | 08/05/24 | Neutral | 05/05/20 | 1148.5p |
| Huhtamaki | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 3378c |
| Stora Enso | NEUTRAL | 24/07/23 | Outperform | 10/05/23 | 969c |
| UPM | OUTPERFORM | 09/01/25 | Neutral | 17/09/24 | 2685c |
| SCA | OUTPERFORM | 04/10/23 | Neutral | 03/04/23 | 13900 |
| Smurfit Westrock | OUTPERFORM | 08/07/24 | N/A | N/A | 5211c |
DAVY VIEW
Our 2025 top picks are Smurfit Westrock (SW) and UPM. US packaging demand growth supports higher box prices and SW merger synergy delivery. With SW trading at a substantial discount to US packaging peers, we prefer SW to International Paper (IP). Following a 15% H2 2024 Chinese pulp correction, we believe Chinese and global pulp prices have troughed with UPM well placed for 2025 pulp recovery. We upgrade UPM to ‘Outperform’, preferring it to Stora Enso.
