Business
JPM sees tough 2026 for paper firms
JPM sees tough 2026 for paper firms
About this update from Holmen Ab Class A
** J.P. Morgan forecasts a tough 2026 for the EMEA paper and packaging sector, citing looming excess supply that prompts a highly selective stock-picking approach** The brokerage expects global oversupply to pressure cartonboard prices, while EU containerboard and global pulp prices will likely hover around cost support levels for 2026** Reflecting this cautious view, JPM downgrades Swedish forest products firm SCA OMXSTO:SCA_A to "neutral" from "overweight" due to declining wood fibre prices** The broker also keeps "underweight" ratings on Holmen OMXSTO:HOLM_A and UPM OMXHEX:UPM, citing Holmen's unfavourable product mix and a deteriorating post-2027 pulp outlook for UPM** However, the broker highlights the U.S. corrugated market as "a place to hide, and eventually thrive" thanks to disciplined supply and stable pricing prospects** Consequently, JPM reiterates its "overweight" ratings on US-exposed firms Smurfit WestRock NYSE:SW and Packaging Corp of America NYSE:PKG as its top ideas for 2026