Cardboard box maker DS Smith PLC (LSE:SMDS) nabbed a 'buy' rating from UBS in anticipation of some good interim earnings on Thursday, December 7.
The group is expected to deliver £360 million in underlying earnings as “reduced input costs and cost mitigation efforts have broadly offset the price declines”, per the group’s latest trading update.
According to UBS: “The 3% decline this month in testliner prices after months of price stability (albeit at a depressed level) has led investors to question whether there could be another leg down in pricing given volumes are not meaningfully improving and new capacity should ramp up in 2024.”
Nonetheless, UBS has a positive view and has a 361p share price target, compared to the last close price of 290.6.