Shares in Smurfit Kappa fell as much as 2.4% to €26.83 in Dublin in early trading as analysts in Goldman Sachs 'downgraded their rating on the cardboard box-making giant’s stock on valuation grounds' following a strong performance so far this year.
Goldman Sachs analyst, including Kevin Hellegard, reduced its recommendation on the stock to ‘neutral’ from ‘buy’ and lowered his share price target by €1 to €29, according to Irishtimes.ie
“We downgrade Smurfit Kappa to neutral from buy on recent outperformance post containerboard price increases and market expectations of margin expansion,” the Goldman Sachs analysts said.
The Dublin-based paper packaging group’s stock reportedly had risen almost 24% so far this year, making it the second biggest gainer on the Iseq 20 index, marginally behind aviation group Ryanair.
In February, 'the group posted a better-than-expected 5% increase in 2016 earnings before interest, tax, depreciation and amortisation to €1.24 billion'.
© 2017 - Checkout Magazine by Donna Ahern