Nordic Paper Holding (Buy, TP: SEK55.00) - Strong volumes, improving p...

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. ...

Nordic Paper Holding (Buy, TP: SEK55.00) - Mixed results, improving ou...

Nordic Paper reported mixed Q1 results, with sales above consensus but weaker margins mainly due to slippage in realised prices and cost volatility in energy inputs. Product prices began to recover at end-Q1, which should drive margin expansion from the disappointing Q1 levels. We believe Nordic Paper is well positioned for price inflation in the paper space as well as the likely near-term reopening of economies, backed by an attractive valuation and strong yield support. We reiterate our BUY an...

Nordic Paper Holding (Buy, TP: SEK55.00) - Capturing the price momentu...

Significant price inflation in paper-based materials provides support for 2021–2022 forecasts in our view, though Q1 is unlikely to see much benefit, given the timing of hikes in the market and Nordic Paper’s contract structure. We consider Nordic Paper well positioned for price inflation in the paper space, as well as the near-term reopening of economies, backed by an attractive valuation and strong yield support. We have raised our target price to SEK55 (52), and reiterate our BUY.

Nordic Paper Holding (Buy, TP: SEK52.00) - Establishing yield case cre...

Nordic Paper showed Q4 strength, proposing a higher DPS than expected (SEK2.00; yield 4.7%), establishing its credentials as a yield case. With an underlying stable demand outlook and kraft paper prices indicated to rise, we consider Nordic Paper well-positioned as pandemic-related lockdowns ease, backed by an attractive valuation and strong yield support. We reiterate our BUY and SEK52 target price.

Northern Lights

Northern Lights

Nordic Paper Holding (Buy, TP: SEK52.00) - Q4e free from drama

Following annual maintenance stoppages in Q3 and problems starting production, operations ran smoothly in Q4 and the market pull seems reasonable despite some Covid-19-related challenges. We consider Nordic Paper well positioned as lockdowns ease, backed by an attractive valuation and strong yield support. We reiterate our BUY and SEK52 target price.

Northern Lights

Northern Lights

Nordic Paper Holding (Buy, TP: SEK52.00) - Pack ’em, s(t)ack ’em, wrap...

We initiate coverage of Nordic Paper with a BUY and SEK52 target price, finding a strong niche strategy in its specialty paper segments, and good demand growth (which has already yielded best-in-class returns and FCF), aided by ESG trends. We see an attractive valuation and strong yield support, and a good entry point on our view that the perceived Bäckhammar project execution risk is greater than the actual risk.