Report
Jimi Lehtonen
EUR 88.42 For Business Accounts Only

Stora Enso (Hold, TP: EUR14.50) - Demand trends persist

We expect Stora Enso’s Q3 results to reflect heavy maintenance spending and lower market prices of paper and packaging materials, but broadly unchanged demand from Q2. The shares have appreciated strongly in recent months, mirroring the moves of packaging peers in particular, despite minimal changes to consensus. Our 2021e EV/EBIT of ~16x is elevated, but not particularly out of line with peers. We reiterate our HOLD, while we have raised our target price to EUR14.5 (11.5) on higher estimates and peer valuation multiples.
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
Jimi Lehtonen

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