DS Smith, the cardboard box-making giant, has sunk by 5% ahead of a financial update on Thursday.
Investors will likely be watching for the impact of lower testliner (corrugated board) prices.
Testliner is down by a third this year and any lowering of indications for the current year will be the main point of interest, UBS said.
“Given the continued decline in testliner prices (and likely risk that this partly feeds into lower box prices), there is a risk that DS Smith strikes a more cautious tone than consensus currently factors in,” said the Swiss bank.
Guidance for the year ahead (2023-24) is £730mln, well down on the underlying profits [EBIT] of £850-869mln Smith has already said it will announce in its annual results.