Report
Johannes Grunselius
EUR 88.04 For Business Accounts Only

Stora Enso (Hold, TP: EUR12.00) - Near-term earnings struggle

While Q3 earnings were slightly above our muted forecasts, we were slightly disappointed by the broad outlook for stipulating continued challenging markets for the rest of 2023 and early 2024. Reflecting the new guidance, we have cut our 2024e EBITDA by c10%. Still, with Mr Sohlström aboard as the new CEO, we believe Stora Enso will be even more committed to achieving its cost cuts and restructuring benefits. This in combination with a solid value story leads us to reiterate our HOLD and EUR12 target price.
Underlying
Stora Enso Oyj Class R

Stora Enso is a provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Co.'s reporting segments are: Consumer Board, which develops and provides consumer packaging boards for printing and packaging applications; Packaging Solutions, which develops fibre-based packaging; Biomaterials, which provides a variety of pulp grades for paper, board, tissue, textile and hygiene product producers; Wood Products, which provides wood-based solutions for building and housing; Paper, which provides paper solutions for print media and office use; as well as Other, which includes Co.'s shareholding in the energy company, Pohjolan Voima.

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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