SMFTF - Smurfit Kappa: Pricing Inflection Point And U.S. Entry
2024-03-11 01:53:19 ET
Summary
- Smurfit Kappa recorded its second-best results in its history, with a full-year EBITDA of €2.08 billion and a ROCE above target.
- Volumes returned to growth in Q4 2023, and containerboard producers are looking for price increases, which could positively impact Smurfit Kappa's 2025 EBITDA.
- The merger with WestRock presents significant value creation opportunities for shareholders, with the potential for a re-rating in trading multiples.
Here at the Lab, we like paper companies. In 2023, Smurfit Kappa (SMFKY) (SMFTF) was one of our top picks . Thanks to a solid balance sheet, our team's bullish case was built on best-in-class profitability and M&A optionality. This is what happened later on with the WestRock acquisition . Before moving on with our upside view, it is important to recap the company's latest results....
Smurfit Kappa: Pricing Inflection Point And U.S. Entry