As expected, Stora witnessed performance erosion in Q2 20. While paper was to be largely blamed for this weakness, other divisions (packaging in particular) managed to achieve varying improvements / positives. Moreover, cost savings played a major role, especially in helping arrest any major sequential correction. Although we remain positive on the stock, given the potential of its key businesses, the road ahead, at least in the near-term, is likely to be a bumpy one.
24 Jul 2020
Weak Q2 overshadows some important takeaways
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Weak Q2 overshadows some important takeaways
Stora Enso Oyj Class R (STERV:HEL) | 0 0 1.8% | Mkt Cap: 11,103m
- Published:
24 Jul 2020 -
Author:
Varun Sikka -
Pages:
4
As expected, Stora witnessed performance erosion in Q2 20. While paper was to be largely blamed for this weakness, other divisions (packaging in particular) managed to achieve varying improvements / positives. Moreover, cost savings played a major role, especially in helping arrest any major sequential correction. Although we remain positive on the stock, given the potential of its key businesses, the road ahead, at least in the near-term, is likely to be a bumpy one.