Price rises may boost paper & packaging firms' outlooks, JPM says
** Recent price increases in pulp and containerboard raise the chance for upward guidance revisions from paper and packaging names, J.P.Morgan says
** JPM downgrades SCA SCAb.ST to "underweight" from "neutral", saying that in order to justify the current valuation, it would need to see pulp and containerboard prices about 8% higher than forecast until 2027
** Even in that scenario, it sees better investment options in UPM UPM.HE, Stora Enso STERV.HE, and its top pick Smurfit Kappa SKG.I (all "overweight")
** JPM expects the companies to be cautiously optimistic on 2024 outlook, as pulp has seen two separate price increases since Q4 results, while testliner had one larger and sooner-than-expected increase
** It says Stora Enso's guidance seems to be the easiest to achieve
** There is a low probability of Stora Enso making a formal guidance upgrade in Q1 due to low visibility, but if prices remain, an upgrade is possible in Q2, JPM adds
Reporting by Marta Frąckowiak
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