Nordic forestry firms tumble as Carnegie sees sharp decline in 2023

Metsa Board Oyj

09/06/2022 09:39

** Shares in Nordic forestry firms fall after Carnegie cuts
ratings, saying it expects earnings in the industry to decline
in 2023 amid lower sales prices
    ** Metsa Board  METSB.HE  falls more than 5%, while Stora
Enso  STERV.HE  and Svenska Cellulosa  SCAb.ST  slide around 4%
in the morning trade
    ** "After exceptionally strong earnings increases in
2021–22e, we look for sharply declining earnings in 2023,"
Carnegie says, expecting lower sales prices due to weaker demand
    ** It expects prices to fall especially in sawn timber,
paperboards and pulp
    ** "The majority of economic indicators now point to
weakness ahead in Europe and North America," the broker adds
    ** Carnegie cuts Stora Enso and Metsa Board to "hold" from
"buy", expecting the companies' EPS in 2023 to fall 34% and 20%,
respectively
    ** SCA's EPS is to fall 38% next year, Carniegie says,
cutting the rating to "sell" from "hold"
    ** The broker keeps "buy" for Finland's UPM-Kymmene
 UPM.HE , citing the company's limited activity in timber and
paperboard with more exposure to paper, which is to remain
strong amid limited supply

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))