Paper & packaging - Upgrading forecasts to reflect better pricing and volume environment

Davy Research
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The fundamentals of the European packaging sector are as positive as they have been for years. Strong box demand and rising prices will continue to drive earnings upgrades for all three quoted players. Sector valuations are not stretched given this positive outlook. Smurfit Kappa Group (SKG) remains our top pick given the strength of its cash flow and compelling valuation.