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AVY - Avery Dennison News Story

$220.44 5.5  2.6%

Last Trade - 13/05/21

Sector
Basic Materials
Size
Large Cap
Market Cap £12.70bn
Enterprise Value £13.99bn
Revenue £5.19bn
Position in Universe 628th / 6856

BUZZ-Paper packaging cos fall as BofA Merrill says oversupply issue remains

Tue 16th April, 2019 4:31pm
** Shares of paper packaging companies fall in early
trading, leading declines among S&P 500  .SPX  companies 
    ** Westrock Co  WRK.N , Packaging Corp of America  PKG.N ,
International Paper Co  IP.N  drop between 6.4% and 8.4% while
the broader S&P materials sector  .SPLRCM  declines 0.31% 
    ** BofA Merrill Lynch says March containerboard industry
data points were disappointing and oversupply issue remains 
    ** Brokerage downgrades PKG and IP stocks to "neutral" from
"buy"
    ** Box shipments were down a surprising 3% year-over-year
while inventories declined 47k tons vs. the typical 70k ton
decrease seen over the last 10 years - BAML 
    ** BAML adds, industry data suggests producers are not able
to manage their excess inventory and production and now
anticipates increased likelihood of another price cut during Q2 
    ** Shares of other packing cos were also down; Avery
Dennison Corp  AVY.N  off 1.25% and Sealed Air Corp  SEE.N  down
1.10% 
    ** Brokerage also trims PTs on PKG, IP and WRK
  Company      New PT      Old PT
     IP         $50         $53
    PKG        $107         $112
    WRK         $41         $43
    ** The materials sector has risen ~14% this year vs. an over
16% rise on the broader S&P 500 index

 (Reporting by Shreyashi Sanyal in Bengaluru)
 ((RM: Shreyashi.Sanyal.thomsonreuters.com@reuters.net))
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