Although SCA began 2022 on a strong note – with quarterly results exceeding market expectations, the normalisation trend in Forest and Wood (key 2021 performance drivers) was clearly evident. Moreover, considering the firm’s material European sales exposure and high inflation risks, further normalisation has a high probability, especially in the context of aggressive expected interest rate hikes. Hence, our cautious stock recommendation should be maintained.
02 May 2022
Strong Q1 results, but brewing risks cannot be ignored
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Strong Q1 results, but brewing risks cannot be ignored
- Published:
02 May 2022 -
Author:
Varun Sikka -
Pages:
4
Although SCA began 2022 on a strong note – with quarterly results exceeding market expectations, the normalisation trend in Forest and Wood (key 2021 performance drivers) was clearly evident. Moreover, considering the firm’s material European sales exposure and high inflation risks, further normalisation has a high probability, especially in the context of aggressive expected interest rate hikes. Hence, our cautious stock recommendation should be maintained.