Smurfit Kappa and DS Smith up to buy as Jefferies turns positive on packaging sector

0 5
The broker said despite a ramp-up of supply in Europe, they expected “robust" underlying demand supported by e-commerce, sustainability and “some…industrial recovery” in the second half of 2021 Both () and () have been upgraded to ‘buy’ from ‘hold’ by analysts at Jefferies as the broker said it is “more positive” on the paper and packaging industry in 2021 as a tighter inventory drove up prices in the sector. In a note on Thursday, the broker said despite a ramp-up of supply in Europe, they expected “robust underlying European demand” supported by e-commerce, sustainability and “some…industrial recovery” in the second half of the year, as well as increased exports to China. “In our view, sector risk/reward is to the upside as we see less probability of a bear case pricing scenario. Given the better balance sheets, higher margins/[return on capital employed] over time and combined with future e-commerce and sustainability tailwinds, in our v
Subscribe or log in to read the rest of this content.
Leave A Reply

Your email address will not be published.

At The Centre of Every Trade
$59.95/month