Business Magazine recommends purchase of Stora Enso

November 25, 2010 by timbercommunity

Stora Enso R at the Swedish Stock Exchange

The business magazine "Veckans affärer" recommends bying stocks in the paper and packaging firm Stora Enso according to the Thursday's printed edition. 

The reason is that Stora Enso is a market leader with stability and the type that the company has much to gain from the consolidation in the forestry industry which has been speculated for some time. The market potential is in the low valuation, both fundamentally and fairly compared with the rest of the sector. As a net seller of pulp, the company is also a winner at the rising pulp prices according to the magazine. However, there are risks of further cost increases along with the lack of structural changes. The magazine sees a price potential of 20% to more than 80 SEK at p/e-ratio of 11.

Stora Enso R ended +1,92% and latest was 63,60 SEK on Thursday.
Stora Enso R in 12 month + 13,07 and +10,99% in last 3 months but during last month -5,71%.