After a weak Q1, UPM’s performance severity aggravated in Q2. The situation was complicated by extreme COVID-19-induced pressure in conventional paper – also the group’s biggest division (c.33% of sales). However, taking into consideration management’s prowess to (effectively) deal with paper market challenges, and the potential of on-going transformational projects and pandemic-triggered gains for various divisions, our recommendation should be maintained.
29 Jul 2020
Another weak quarter + bleak H2 outlook, but UPM remains attractive
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Another weak quarter + bleak H2 outlook, but UPM remains attractive
After a weak Q1, UPM’s performance severity aggravated in Q2. The situation was complicated by extreme COVID-19-induced pressure in conventional paper – also the group’s biggest division (c.33% of sales). However, taking into consideration management’s prowess to (effectively) deal with paper market challenges, and the potential of on-going transformational projects and pandemic-triggered gains for various divisions, our recommendation should be maintained.