Business
Barclays expects European packaging to face weaker demand amid tariffs
Barclays expects European packaging to face weaker demand amid tariffs
About this update from Holmen Ab Class A
** Barclays expects European consumerboard operations to be loss-making until there are changes to U.S. tariffs ** "In the near term, all packaging stocks could see second-order impacts of end-market volume pressure from weaker consumer demand," it says ** The broker cuts its 2025 estimates for Stora Enso OMXHEX:STEAV and Holmen OMXSTO:HOLM_A , as it expects material impact on their consumerboard EBIT from the tariffs ** The broker sees Stora Enso as "particularly vulnerable", due to the Finnish group's high leverage and start-up of its new consumerboard capacity at Oulu, which Barclays thinks will be hard to fill ** Stora may have to sell additional forests or raise equity to reduce its leverage, it adds ** However, Barclays expects Smurfit WestRock NYSE:SW to benefit from lower imports from the EU owing to the London-listed group's domestic consumer packaging business in the U.S., despite a near-term recession risk COMPANY NEW RATING OLD RATING NEW PT OLD PT Holmen OMXSTO:HOLM_A underweight equal weight SEK 350.00 SEK 420.00 Mondi LSE:MNDI equal weight underweight 1,100p 1,110p Stora Enso OMXHEX:STEAV underweight overweight EUR 7.5 EUR 11.50