JPM cuts Essity on risk to operating profit from rising costs

Essity AB (publ)

20/04/2026 08:12

** J.P. Morgan downgrades Swedish hygiene company Essity ESSITY.ST to "underweight" from "neutral" as rising pulp and energy costs will likely squeeze its operating profit

** The broker notes the firm is hedged on energy early in the year but expects costs to rise from Q2 and likely peaking in H2, driving margin deterioration

     ** JPM anticipates a 4% inflation in COGS for the year which it expects will be only partially offset by near-term price increases

** The brokerage cuts its 2026 EPS forecast by about 4% as reliance on future price hikes risks a persistent muted volumes development

(Reporting by Agnieszka Olenska)

((Agnieszka.Olenska@thomsonreuters.com;))