Report
Johannes Grunselius
EUR 88.67 For Business Accounts Only

Metsa Board (Buy, TP: EUR10.00) - Earnings recovery story still intact

Due to lower-than-expected pulp earnings from Metsa Fibre, Q2 earnings were below our expectations at the same time as the outlook guidance was more vague and softer than we expected. Reflecting the Q2 miss and a more cautious view on volumes and opex, we have lowered our 2024–2025e EBITDA by c24–9%. While this is negative, we continue to like the investment story due to strong earnings growth, appealing valuation multiples and a healthy balance sheet. We reiterate our BUY but have cut our target price to EUR10 (11).
Underlying
Metsa Board Oyj Class B

Metsa Board is a European producer of folding boxboard and white fresh forest fibre linerboard and a market pulp supplier. Co. and its subsidiaries comprise a forest industry group, which operations are organized into two business segments: Cartonboard and Lineboard and Paper. The Cartonboard business area is a manufacturer of folding boxboards. The business area also provides packaging services in Asia. The Linerboard and Paper business area is a manufacturer of coated white fresh forest fibre linerboards and producer of uncoated fresh forest fibre linerboards. The Linerboard and Paper business area also manufactures uncoated fine papers mainly for office end-use as well as coated papers.

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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