UPM-Kymmene Oyj

UPM-Kymmene is a global paper and forest products group, mainly engaged in the production of paper, with an emphasis on the manufacture and sale of printing and writing papers. Co.'s operations comprise of these segments: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper ENA, UPM Plywood and Other. UPM Biocomposites, UPM Biochemicals business units and Group services are reported in Other operations. Co.'s activities are centred in European Union countries, North and South America and Asia with production plants in 13 countries.
  • TickerUPM
  • ISINFI0009005987
  • ExchangeNasdaq Nordic Helsinki
  • SectorForestry & Paper
  • CountryFinland
Jimi Lehtonen

UPM (Buy, TP: EUR28.00) - Label us bullish

UPM reported a high-quality earnings beat in Q2, despite the headwind caused by collapsing paper demand. Raflatac and Specialty papers stole the show, as both again enjoyed strong performance. The challenges in paper markets are evident, and guidance for lower H2 prices came as no surprise but should reset consensus EBIT for 2020e to a lower level. We see the outlook as somewhat de-risked, and believe recent underperformance offers a nice entry point to the long-term story. Consequently, we have upgraded to BUY with a EUR28 (26) target price.

Anders Idborg ...
  • Benjamin Silverstone
  • Daniel Thorsson
  • Erik Moberg
  • John Olaisen
  • Jonas Bru Lien
  • Martin Melbye
  • Victor Forssell

Talking Points - Epiroc (Hold): A lot to live up to

TGS Nopec (Buy) Post-results: Only minor estimate changes post Q2 Insignificant estimate changes as FX offset Stock needs to consolidate significant re-rating

Benedicte Aass ...
  • Martin Melbye

Sector Fast Comment - June pulp data: shipments -4% y-o-y

Global shipments -4% y-o-y, to China -8% y-o-y Inventories up 3% m-o-m, 27% above hist. avg. Pulp prices are now up 2% YTD after a 2% drop in June

Benedicte Aass ...
  • Martin Melbye
  • Øystein Elton Lodgaard

UPM-Kymmene - Lower paper prices and a stronger EUR

Clean EBIT was 13% above - Q3 likely lower q-o-q Paper prices could drop 5% in H2, plus a stronger EUR New projects could lift EBIT by 40% long term

Benedicte Aass ...
  • Martin Melbye
  • Øystein Elton Lodgaard

UPM-Kymmene - Clean EBIT 13% above, Q3 could be lower

Clean EBIT 13% above cons Raflatac (labels) and Biorefining above, Paper below Outlook: Q3 could be lower on lower paper prices

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Not much has changed over the past week when looking at the MSCI ACWI and S&P 500, with prices generally trending sideways and no material changes in our primary breadth indicators. Therefore, our outlook remains positive given breadth and price action improvements on both the ACWI and S&P 500 relative to mid-April (both developments that we highlighted in the 5/17/18 International Compass). • Major themes: Opportunities within Health Care and Materials. Price and relative strength trends continue to improve for our international equal-weight Health Care Sector. We recommend adding exposure.....

Jimi Lehtonen

UPM (Buy, TP: EUR28.00) - Label us bullish

UPM reported a high-quality earnings beat in Q2, despite the headwind caused by collapsing paper demand. Raflatac and Specialty papers stole the show, as both again enjoyed strong performance. The challenges in paper markets are evident, and guidance for lower H2 prices came as no surprise but should reset consensus EBIT for 2020e to a lower level. We see the outlook as somewhat de-risked, and believe recent underperformance offers a nice entry point to the long-term story. Consequently, we have upgraded to BUY with a EUR28 (26) target price.

Anders Idborg ...
  • Benjamin Silverstone
  • Daniel Thorsson
  • Erik Moberg
  • John Olaisen
  • Jonas Bru Lien
  • Martin Melbye
  • Victor Forssell

Talking Points - Epiroc (Hold): A lot to live up to

TGS Nopec (Buy) Post-results: Only minor estimate changes post Q2 Insignificant estimate changes as FX offset Stock needs to consolidate significant re-rating

Benedicte Aass ...
  • Martin Melbye

Sector Fast Comment - June pulp data: shipments -4% y-o-y

Global shipments -4% y-o-y, to China -8% y-o-y Inventories up 3% m-o-m, 27% above hist. avg. Pulp prices are now up 2% YTD after a 2% drop in June

Benedicte Aass ...
  • Martin Melbye
  • Øystein Elton Lodgaard

UPM-Kymmene - Lower paper prices and a stronger EUR

Clean EBIT was 13% above - Q3 likely lower q-o-q Paper prices could drop 5% in H2, plus a stronger EUR New projects could lift EBIT by 40% long term

Benedicte Aass ...
  • Martin Melbye
  • Øystein Elton Lodgaard

UPM-Kymmene - Clean EBIT 13% above, Q3 could be lower

Clean EBIT 13% above cons Raflatac (labels) and Biorefining above, Paper below Outlook: Q3 could be lower on lower paper prices

UPM-Kymmene - December 2017 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

UPM-Kymmene: Update Following an Upgrade To Baa2

CORPORATES CREDIT OPINION 10 November 2017 Update RATINGS UPM-Kymmene Domicile Finland Long Term Rating Baa2 Type LT Issuer Rating - Dom Curr Outlook Stable Please see the  ratings section  at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Analyst Contacts Martin Fujerik +49.69.7073.0909

UPM-Kymmene: Uruguay pulp mill would improve diversification; Baa2 with stable outlook unaffected

CORPORATES ISSUER COMMENT 10 November 2017 Analyst Contacts Martin Fujerik +49.69.7073.0909 VP-Senior Analyst [email protected] Florian Zimmermann +49.69.7073.0971 Associate Analyst [email protected] Matthias Hellstern +49.69.7073.0745 MD-Corporate Finance [email protected] UPM-Kymmene Uruguay pulp mill would improve diversification; Baa2 with stable outlook unaffec

UPM-Kymmene - September 2017 (LTM): Peer Snapshot

Peer Snapshot: UPM-Kymmene - September 2017 (LTM) 9 November 2017 (in US millions) FYE Dec-15 FYE Dec-16 LTM Sep-17 FYE Dec-15 FYE Dec-16 LTM Jun-17 FYE Dec-15 FYE Dec-16 LTM Jun-17

Moody's upgrades UPM-Kymmene to Baa2; stable outlook

Rating Action: Moody's upgrades UPM-Kymmene to Baa2; stable outlook. Global Credit Research- 02 Nov 2017. Frankfurt am Main, November 02, 2017-- Moody's Investors Service, has today upgraded the long term issuer rating of UPM-Kymmene to Baa2 from Baa3.

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Jesper Ingildsen
  • Jimi Lehtonen
  • Joachim Gunell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christoffer Wang Bjørnsen ...
  • Frank Maaø
  • Håkon Astrup
  • Jimi Lehtonen
  • Martin Arnell
  • Ole-Andreas Krohn
  • Patrik Ling
  • Rune Majlund Dahl
  • Stefan Gauffin
  • Viktor Trollsten

Northern Lights

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christoffer Wang Bjørnsen ...
  • Eivind Sars Veddeng
  • Jimi Lehtonen
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Nicolay Dyvik
  • Niklas Wetterling
  • Ole-Andreas Krohn
  • Patrik Ling

Northern Lights

Eivind Sars Veddeng ...
  • Jimi Lehtonen
  • Jon Masdal
  • Martin Arnell
  • Martin Huseby Karlsen
  • Ole-Andreas Krohn
  • Rune Majlund Dahl

Northern Lights

With a more favourable environment, UPM-KYMMENE OYJ improves to Slightly Positive

UPM-KYMMENE OYJ (FI), a company active in the Paper industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date July 3, 2020, the closing price was EUR 25.48 and its potential was estimated at EUR 30.13.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

UPM Kymmene - AGM 31 March 2020

In general, UPM Kymmene ("UPM") is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 10 the board of directors seeks approval of the Company's executive remuneration policy. ECGS notes that, following the entry into force of the EU Shareholders’Rights Directive (SRD II), this is the first time that UPM puts its executive remuneration policy to a vote. In general, ECGS deems the overall level of transparency of the policy in line with Finnish standards. On the other hand, ECGS notes that the total variable salary in...

Expert Corporate Governance Service (ECGS)

UPM Kymmene, April 04th 2019

In general, UPM Kymmene ("UPM") is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 14, the audit commitee proposes to re-appoint PricewaterhouseCoopers as the Company's statutory auditor. ECGS notes that the current auditor has been in office for 23 years, which exceeds its guidelines. In line with EU regulation, ECGS recommends a term of maximum 20 years (10 + 10 years, if a tender is undertaken). In view of the above, ECGS recommends to vote OPPOSE. Under ITEM 15, the board of directors seeks authority to issu...

UPM – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Proxy Report - 05/04/2018

In general, UPM Kymmene ("UPM") is in compliance with the Finnish regulations relating the organisation and procedures of the Annual General Meeting. Under ITEM 14, the board of directors proposes to re-appoint PricewaterhouseCoopers as the Company's statutory auditor. Although the level of non-audit fees is in line with its guidelines, ECGS notes that the current auditor has been in office for 22 years, which exceeds its guidelines. ECGS therefore recommends to vote OPPOSE. There are no further peculiarities.

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