Jefferies cuts Billerud to 'hold' as recent share rally limits upside
BUZZ-Jefferies cuts Billerud to 'hold' as recent share rally limits upside ** Jefferies downgrades Swedish paper and packaging manufacturer Billerud BILL.ST to "hold" as shares rallied and surpassed the broker's previous target
** As the stock gained 32% since end of June, Jefferies finds it difficult to justify further valuation upside by pricing in these unknown strategic actions despite raising its PT by 12.5% to SEK 90
** Billerud said it is "evaluating all opportunities to play an active role in addressing industry challenges," which the broker notes could indicate possible closures and M&A activity
** The European paper and packaging sector remains oversupplied and requires footprint optimisation to balance supply and demand dynamics and support profit margins
** The brokerage adds that its core earnings estimates for 2026 and 2027 are below market consensus, as it believes current expectations have overshot to the upside
** Billerud shares were down 2.4% at around 0900 GMT
** Out of 8 analysts that cover the stock, five rate it "buy" and it three maintain a "hold" rating - LSEG data
(Reporting by Agnieszka Olenska)