Nordic Paper Holding (Buy, TP: SEK55.00) - Strong volumes, improving pricing
Nordic Paper reported solid Q2 results, with sales slightly below consensus but better than expected margins due to high production volumes and good cost control. Product prices started improving during the quarter with more to come in H2e, which should offset headwinds from FX and potential further raw materials cost inflation. The reopening of economies has started to support demand for Natural Greaseproof due to a pick-up in foodservice activity, while demand for Kraft Papers remains strong. We have tweaked our estimates and reiterate our BUY and SEK55 target price.
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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