Billerud (Buy, TP: SEK150.00) - Rosy outlook for cash
Billerud’s CMD was interesting, in our view, and contained positive and negative news. Although there are no imminent plans for pursuing buybacks, this was mitigated by prudent investment guidance for 2025–2027, cSEK1.4bn below our estimate (c. SEK6/share). Considering FX tailwinds (stronger USD) combined with improving European markets beyond 2024e, we find the new long-term EBITDA target of at least SEK6bn per year realistic. We reiterate our BUY and SEK150 target price.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.
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.
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