Report
Johannes Grunselius
EUR 91.91 For Business Accounts Only

Billerud (Buy, TP: SEK130.00) - US bolstering the team

The Q1 report demonstrates that Billerud is in good shape and, most importantly, significantly improved in pricing power across the board, in our view. Our optimistic earnings scenarios for Europe and North America are largely unchanged and we stress that a lot of earnings uncertainty has been eliminated. With modest consensus earnings expectations, attractive long-term valuation potential and a possibility for value creation from future conversion investments in the US, our confidence in the investment case has strengthened further. We reiterate our BUY and have raised our target price to SEK130 (128).
Underlying
BillerudKorsnas AB

Billerud Korsnas Aktiebolag Public is a provider of packaging products and services. Co. has three business areas: Packaging Paper, which provides kraft and sack paper, as well as functional solutions for several applications, including packaging for foodstuffs, industrial purposes, medical applications and carrier bags, and also sells surplus of pulp that Co. does not use in its own production; Consumer Board, which develops and markets cartonboard used in packaging for beverages, yoghurt, refrigerated and frozen food products and other consumer goods; and Containerboard, which provides corrugated board raw material that provides packaging for transportation uses and primary packaging.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Johannes Grunselius

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