Market's view on Smurfit Kappa
Published on April 2024
- The European Commission has approved a merger.
- Stock watchers are puzzled by the recent positive stock price performance, which is unexpectedly high compared to competitors like DS Smith and Mondi, despite no recent mergers.
- There is speculation that the rise in paper and cardboard usage, as governments move away from plastic packaging, will benefit the company’s future.
- Discussions are ongoing about the potential impact of an upcoming budget on the company.
- Smurfit Kappa has urged EU ministers to support legislation requiring all packaging to be recyclable by 2030, which could significantly influence the industry.
- Smurfit Kappa has been awarded as a top supplier by PepsiCo.
- Issues with dividend payments not being received or being less than expected were reported, with some attributing it to tax issues.
- Institutional investors have been increasing their stakes in the company.
- The company’s share price is being heavily influenced by hedge funds and short-term traders, causing significant price volatility.
- Concerns are raised about the potential increase in debt burden following a proposed merger, which might lead to revising the year’s low share price forecast.
- Smurfit Kappa’s management decisions and strategies, including mergers and acquisitions, are being closely watched for their long-term impact on stock performance.