topstockalerts
Aug 5, 1:48 AM
Morgan Stanley named Smurfit Westrock its top pick in the paper and packaging sector after the company’s Q2 results and updated outlook. Q2 EBITDA came in at about
$1.14 billion, broadly in line with expectations, while net debt of
$13.5 billion was slightly better than Morgan Stanley’s forecast. The company lowered its full-year EBITDA guidance to
$4.9-
$5.1 billion, but the midpoint remained close to consensus.
Q3 EBITDA guidance of
$1.3 billion came in below expectations due to roughly
$150 million in higher freight and energy costs. North American volumes were weaker than expected, but stronger European performance partially offset the shortfall. Morgan Stanley believes the regional mix and cost pressures are manageable and sees the company as well positioned for earnings improvement in 2027.
$SW $MS
