Citi says weak paper and packaging demand to persist in Q3
09/10/2023 13:18
** Citi Research says European paper and packaging firms'
recovery, supported by a trough in pulp prices, could be slower
than their fall
** The broker says Finland's UPM UPM.HE may be the only
name to see underlying progression between Q2 and Q3, putting it
on positive catalyst watch along with UK-based Mondi MNDI.L
** It notes container board prices are stable but weak, and
consumer board prices could recover even later, affecting Stora
Enso STERV.HE and Billerud BILL.ST
** It views Billerud's recent 25% rally as premature and
cuts the Swedish pulp maker to "sell" from "neutral"
** Citi expects continued weak demand in Q3 for Billerud,
made worse by price decreases, and says destocking continues to
hamper its kraftliner operations in Europe
** It reiterates "buy" on UPM, Mondi, SIG SIGNC.S and
Verallia VRLA.PA , "neutral" on Stora, and "sell" on Vidrala
VID.MC
(Reporting by Elviira Luoma)
((Elviira.luoma@thomsonreuters.com))